Meta lays off about 700 workers amid AI investment push

Meta $META is laying off 700 employees across company divisions while introducing a stock compensation program for six executives. According to The New York Times, the affected divisions include Reality Labs, social media, sales, and talent acquisition. These reductions account for a small percentage of Meta's nearly 79,000-person headcount recorded at the close of 2025, according to The Verge.

The job reductions align with a shift from metaverse development to artificial intelligence infrastructure. According to The Seattle Times, Meta plans to direct $115 billion to $135 billion toward artificial intelligence initiatives this year, primarily funding equipment and data center builds. The infrastructure buildout includes an agreement to use Arm central processing units in the data centers.

Chief Executive Mark Zuckerberg aims to build advanced artificial intelligence designed to serve as a personal digital associate. During an investor presentation, he noted that generative technology will transform labor dynamics, enabling solo workers to execute tasks that previously demanded large groups.

The company's Reality Labs division has reported $76.9 billion in losses since 2021. Meta reduced its Reality Labs workforce by 10 percent in January and closed three virtual reality studios. The January cuts resulted in 331 job losses in the Puget Sound area. Meta also stopped producing updates for its VR workout software and abandoned several real estate leases in the Pacific Northwest. Apple $AAPL leased the vacated office space.

Prior to the workforce reductions, the tech giant revealed a new equity compensation plan benefiting several top leaders, such as Chief Product Officer Chris Cox, Chief Financial Officer Susan Li, and Chief Technology Officer Andrew Bosworth. The program includes Chief Operating Officer Javier Olivan, President Dina Powell McCormick, and Chief Legal Officer C.J. Mahoney.

The program grants a maximum of $921 million in options to each executive provided the enterprise achieves a $9 trillion market capitalization by 2031. Li would receive options worth $161 million under the target. Meta maintains a $1.5 trillion market capitalization.

The enterprise had not issued executive equity options since its 2012 initial public offering. Zuckerberg did not receive stock options under the plan. A Meta spokesperson said in a statement that the compensation packages require success to benefit shareholders.

A representative indicated the reorganization is designed to align the staff with Meta's broader strategic objectives. The company is attempting to place workers into other roles.

The workforce reduction happened as a Los Angeles jury ordered Meta and Google $GOOGL to pay $3 million in damages over claims their platforms addict users, according to Fox Business.