Meta begins layoffs of hundreds of employees in five divisions
NBC News • • business
Key Points:
- Meta has begun laying off hundreds of employees across its Reality Labs virtual reality division and at least four other divisions, including recruiting, sales, global operations, and Facebook social teams, as part of a larger company reorganization.
- The layoffs are occurring in waves, with most affected workers notified on Wednesday and some to be informed in the coming weeks, and some employees are being offered new roles or relocation options.
- CEO Mark Zuckerberg has emphasized a strategic shift towards AI investment, highlighting that AI is enabling projects to be completed by smaller teams, which is influencing the company’s restructuring efforts.
- Meta reported a $6.02 billion operating loss in its Reality Labs division for 2025 and expects similar losses in 2026, while employee compensation remains a significant expense due to planned hires focused on AI development.
- Despite its rebranding to Meta and focus on the metaverse since 2021, the company continues to reduce staff in its VR division as it pivots more heavily toward AI technology.
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