Meta Lays Off 700 Employees as AI Push Intensifies, While Executives Receive Major Stock Incentives
Meta has laid off around 700 employees across teams like Reality Labs, recruiting and sales as part of a broader shift toward artificial intelligence. At the same time, the company introduced a stock compensation plan that could grant top executives up to $921 million each, reflecting its focus on retaining leadership during the AI race. The move highlights Meta’s transition away from metaverse investments toward AI-driven growth, even as it faces rising costs and regulatory scrutiny.
Meta has laid off around 700 employees as part of its ongoing shift toward artificial intelligence, highlighting a broader transformation in the tech industry.
The job cuts, though small compared to Meta’s workforce of approximately 78,000 employees, primarily impacted teams within Reality Labs, along with some roles in recruiting, sales and core platforms. The layoffs reflect the company’s continued reallocation of resources away from metaverse-focused initiatives and toward AI-driven development.
Just a day before the layoffs, Meta introduced a new stock compensation program for six senior executives. The plan could significantly increase their earnings, with potential payouts reaching up to $921 million each over the next five years. The company stated that the initiative is aimed at retaining top leadership talent and accelerating its long-term AI ambitions.
This contrast between workforce reductions and executive rewards underscores how aggressively Meta is prioritizing artificial intelligence. CEO Mark Zuckerberg has repeatedly emphasized the company’s goal of building advanced AI systems, including what he describes as “superintelligence” highly capable systems designed to act as personal digital companions.
Meta has already invested billions of dollars in hiring AI researchers and engineers, signaling a major strategic pivot beyond its traditional social media business and earlier metaverse investments.
The layoffs also coincided with legal challenges for the company. A jury in Los Angeles recently found Meta liable in a case involving claims that Instagram’s design contributed to harm among young users, potentially opening the door to further scrutiny of social media platforms.
Overall, the developments reflect a clear shift in priorities: Meta is restructuring its workforce and compensation strategies to compete more aggressively in the rapidly evolving AI landscape.