Meta lays off hundreds of employees across key divisions
What's the story
Meta, the parent company of Facebook, is laying off several hundred employees across its key divisions. The layoffs impact teams in Facebook, global operations, recruiting, sales and Reality Labs—the company's virtual reality division. Some affected employees are being offered new roles within the company which could involve relocation.
Company statement
Restructuring to ensure best position to achieve goals
In light of the layoffs, a Meta spokesperson said, "Teams across Meta regularly restructure or implement changes to ensure they're in the best position to achieve their goals." "Where possible, we are finding other opportunities for employees whose positions may be impacted." The restructuring comes as part of Meta's broader strategy to focus on artificial intelligence (AI) and catch up with competitors like OpenAI, Anthropic, and Google.
Past cuts
Layoffs in Reality Labs division last year
The latest layoffs come after Meta had already cut jobs in its Reality Labs division and closed several studios working on VR titles. Those cuts affected more than 1,000 jobs, nearly 10% of that unit. The company also laid off about 5% of its lowest-performing employees last year as part of an ongoing effort to streamline operations.
Strategic pivot
Shift in focus from metaverse to AI
Along with the layoffs, Meta is also shifting its focus from the metaverse to AI and wearable tech. The company has announced plans to spend between $115 billion and $135 billion on capital expenditures this year—an increase of about 75% from last year. Most of this spending will go toward data centers, servers, and other infrastructure needed for advanced AI systems.