Meta cuts 700 jobs
Meta announced about 700 job cuts as it pivots funding away from metaverse projects toward AI R&D — part of a broader wave of restructuring that the company says will fund its AI push. Critics and industry figures like OpenAI’s Sam Altman have warned that some employers use “AI‑washing” as cover for layoffs that are really cost cuts, making the motive behind these moves contested. ( )
The job reductions were concentrated in Reality Labs and also affected recruiting, sales and Facebook product teams, according to company sources quoted by CNBC. (cnbc.com) Meta expects record capital expenditures this year, targeting a range between $115 billion and $135 billion to build AI infrastructure and train models, per TechCrunch’s reporting on the company’s guidance. (techcrunch.com) In January, Meta trimmed about 10% of Reality Labs’ workforce—roughly 1,000 roles out of an estimated 15,000 in that division—which the company followed with this later round of restructuring. (techcrunch.com) Reality Labs has run multiyear operating losses estimated in the tens of billions since the metaverse push began, with reporting placing cumulative spending in the roughly $70–$75 billion range. (uk.moyens.net) Separately, SEC filings show Meta granted performance‑tied stock options to six senior executives for the first time since its 2012 IPO, with payout tranches linked to ambitious share‑price milestones and analysis noting potential awards that could total as much as $921 million per executive if targets are met. (bloomberg.com) Meta said it is offering affected employees other internal roles or relocation opportunities where possible, and reports indicate the cuts span the United States and other international markets. (cnbc.com)
