Meta invests in AI while laying off 700 employees.

It has been reported that Meta began laying off hundreds of employees on Wednesday, March 25, 2026, local time. The layoffs are said to be affecting at least five divisions, including Reality Labs.

Meta begins layoffs of hundreds of employees in five divisions
https://www.nbcnews.com/tech/social-media/meta-layoffs-hundreds-employees-five-divisions-vr-ai-who-rcna265127

Meta Lays Off 700 Employees, While Rewarding Top Executives - The New York Times
https://www.nytimes.com/2026/03/25/technology/meta-layoffs-ai-executives.html

Meta Platforms to Lay Off Hundreds — The Information
https://www.theinformation.com/articles/meta-platforms-lay-hundreds

Meta is laying off hundreds of employees as it pours money into AI | The Verge
https://www.theverge.com/tech/900946/meta-layoffs-hundreds-employees

According to a Meta insider who spoke to NBC News, the layoffs are part of a larger organizational restructuring. A Meta spokesperson confirmed the cuts, telling NBC News, 'Meta's teams regularly reorganize and make changes to be in the best position to achieve their goals.' The New York Times reported that approximately 700 employees will be laid off.

The layoffs are expected to affect employees in recruitment, sales, global operations, and the Facebook social team. Most affected employees were notified on the 25th, and some may be notified in the coming weeks depending on their location and other circumstances.

Some employees may be offered new positions, while others may be given the option of relocating.

It was also reported in mid-March 2026 that Meta was planning to lay off up to 20% of its employees due to rising AI costs.

Meta plans to lay off up to 20% of its employees due to rising AI costs - GIGAZINE

Meta CEO Mark Zuckerberg announced a shift in strategy in early 2026, moving from a metaverse strategy to focusing on mobile features and AI wearables. Regarding this, Zuckerberg said, 'Projects that once required large teams are now being accomplished by one very talented person.'


Reality Labs, which is targeted for layoffs, recorded sales of $955 million (approximately 150 billion yen) in 2025, but posted an operating loss of $6.02 billion (approximately 960 billion yen). There are also reports that Reality Labs is losing as much as $1 billion (approximately 160 billion yen) every month.

Meta has been recording monthly losses of 160 billion yen in its VR division since June 2022 - GIGAZINE

Meta will employ approximately 79,000 people as of December 2025.

It has also been reported that Meta has introduced a large-scale stock compensation package to retain top talent amid intensifying competition for talent with rival AI companies. According to these reports, Meta is offering tens of billions of yen worth of stock options to its senior executives, which is the first time Meta has offered stock options to executives. However, CEO Mark Zuckerberg is not included in this package. The reports also state that while these stock options offer a huge reward if achieved, they are virtually worthless if not achieved, and that achieving them would require Meta's stock price to rise by approximately 88%.

Meta Offers Top Execs Stock Options for First Time Since IPO - Bloomberg
https://www.bloomberg.com/news/articles/2026-03-25/meta-offers-top-execs-stock-options-for-first-time-since-ipo

Meta Targets $9 Trillion Valuation With New Executive Incentive Program - WSJ
https://www.wsj.com/tech/meta-targets-9-trillion-valuation-with-new-executive-incentive-program-64460862

Meta boosts top executives' pay with stock options as AI race heats up | Reuters
https://www.reuters.com/business/meta-grants-senior-executives-stock-awards-retain-talent-2026-03-25/