Meta Cuts 700 Jobs, Earmarks $115–$135B for AI Infrastructure
Meta is cutting 700 positions across key divisions, under 1% of its 79,000 headcount, as it shifts from metaverse to AI infrastructure. It will invest $115–$135 billion in AI equipment and data centers and grant executives up to $921 million in options tied to a $9 trillion market cap.
1. Workforce Reduction and Realignment
Meta is eliminating 700 roles across Reality Labs, social media, sales and talent acquisition, representing under 1% of its nearly 79,000 employees. A reorganization is underway to redeploy affected staff into AI and other strategic areas.
2. AI Infrastructure Investment
The company plans to allocate $115–$135 billion this year toward AI initiatives, focusing on equipment purchases and data center builds powered by Arm CPUs. This marks a decisive pivot from metaverse projects to generative AI development.
3. Executive Stock Compensation Program
Six top executives are eligible for up to $921 million each in stock options if Meta’s market capitalization reaches $9 trillion by 2031. This is Meta’s first executive equity rollout since its 2012 IPO and excludes CEO Mark Zuckerberg.
4. Reality Labs Performance and Retreat
Reality Labs has incurred $76.9 billion in losses since 2021, prompting a 10% workforce cut in January, closure of three VR studios and halted software updates. The division’s retrenchment underscores Meta’s shift away from virtual reality.