TL;DR
- Meta is laying off several hundred employees across teams like Reality Labs, sales, and recruiting
- Cuts impact global workforce but remain under 1,000 roles
- Company is increasing spending on AI, with billions allocated to infrastructure and talent
- Top executives are being offered stock options tied to aggressive valuation targets
Meta Restructures Workforce As AI Spending Surges
Meta has initiated another round of layoffs, impacting several hundred employees across multiple teams, including Reality Labs, recruiting, and sales.
The reductions span both the United States and international markets, reflecting a broader restructuring effort tied to shifting priorities.
The move follows earlier workforce cuts this year, including a January reduction of roughly 10% within Reality Labs, which affected about 1,000 employees. Despite these changes, Meta still had close to 79,000 employees at the end of 2025.
A company 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.”
Some affected employees may be offered alternative roles or relocation options, indicating that the company is attempting to retain talent where feasible while reshaping its workforce.
These layoffs come as Meta ramps up spending significantly. The company has projected total expenses between $162 billion and $169 billion in 2026, largely driven by investments in artificial intelligence and rising compensation costs tied to hiring top-tier AI talent.
Meta Doubles Down On AI With Record Investments
Meta’s restructuring aligns with a broader industry trend where Big Tech firms are reallocating resources toward AI infrastructure and innovation. The company expects capital expenditures to reach between $115 billion and $135 billion this year, marking a record level of investment.
This aggressive spending underscores Meta’s ambition to compete in the rapidly intensifying AI race, where infrastructure, data centers, and elite talent are becoming key differentiators.
The company has already spent millions recruiting leading AI researchers and building advanced systems, positioning AI as central to its long-term strategy.
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Executive Pay Tied To Ambitious $9 Trillion Valuation Goal
At the same time, Meta is introducing a new compensation strategy for its top executives, offering stock options that could be worth hundreds of millions of dollars if ambitious performance targets are met.
These options are tied to dramatic stock price milestones. For instance, shares must rise at least 88.2% from a recent closing price of $592.92 to unlock the lowest tier. The most aggressive tranche requires the stock to reach $3,727.12, implying a valuation exceeding $9 trillion.
Executives must meet these targets by February 14, 2028, for the options to vest. If not achieved, the options will gradually become available through 2030 and expire in 2031 if unused.
Eligible leaders include CFO Susan Li, CTO Andrew Bosworth, product chief Chris Cox, and others, while CEO Mark Zuckerberg is not part of this compensation plan. In addition, most executives will receive restricted stock awards totaling $170 million.
A Meta spokesperson described the compensation structure as a “big bet,” adding that it “will not be realized unless Meta achieves massive future success, benefiting all of our shareholders.”
