In a move that has raised questions around priorities, Meta Platforms has laid off 700 employees across multiple teams, just hours after announcing new stock options for its top executives.
The layoffs impacted several divisions, including Reality Labs—the unit behind the Metaverse—as well as recruiting, sales and core Facebook teams. Reports indicate that this could be part of a larger restructuring plan, with potential job cuts reaching up to 15000 employees globally.
According to a report by The New York Times, the Reality Labs division, which focuses on virtual reality products, has been a major cost center, reportedly incurring losses of over $80 billion. The company has also scaled back future Metaverse development for VR headsets.
Some affected employees are being considered for internal roles, though certain positions may require relocation.
A company spokesperson said, “Teams across Meta regularly restructure or implement changes to ensure they’re in the best position to achieve their goals.”
This marks the second round of layoffs within Reality Labs this year. In January, the Mark Zuckerberg-led company had already reduced 1000 roles in the division.
At the same time, Meta has introduced a new stock option programme for its top executives. The plan could increase compensation by up to $921 million (around ₹8660 crore) per executive over the next 5 years, subject to the company reaching a $9 trillion market cap by 2031. The company is currently valued at around $1.5 trillion. Notably, Mark Zuckerberg is not part of this scheme.
Meta stated that these incentives are aimed at retaining leadership talent as it accelerates its focus on AI and long-term growth.
The company has been actively investing in AI, including acquisitions such as Moltbook and Manus AI, and hiring talent from AI startup Dreamer. However, rising AI costs remain a concern, with projected spending between $162 billion and $169 billion in 2026, largely for infrastructure like data centres.
Meta has also reportedly delayed the release of its upcoming AI model, Avocado, developed by Meta Superintelligence Labs (MSL), after it did not meet internal benchmarks. MSL is led by Alexandr Wang, following Meta’s $14.5 billion acquisition of Scale AI.
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