Meta Cuts Several Hundred Jobs, Forecasts $162B-$169B 2026 Expenses on AI Buildout
Meta Platforms is cutting several hundred jobs across Reality Labs, social media, recruiting and sales while increasing investment in AI infrastructure and talent. The company forecast 2026 expenses of $162 billion to $169 billion to fund data-center buildouts and higher compensation to attract top AI engineers.
1. Scope of Job Reductions
Meta has eliminated several hundred positions spanning Reality Labs, its social media operations, recruiting and sales teams as part of a broader restructuring aimed at reallocating resources toward high-priority areas.
2. Ramp in AI Infrastructure Investment
The company is increasing its spending on data centers and computing capacity for artificial intelligence, while boosting compensation packages to recruit and retain AI engineers and researchers.
3. 2026 Expense Forecast
Meta now projects total operating expenses between $162 billion and $169 billion in 2026, reflecting the substantial capital and personnel outlays required to scale its AI infrastructure.
4. Strategic Shift from Metaverse to AI
Having rebranded to emphasize its metaverse ambitions, Meta is now pivoting focus and budget away from Reality Labs hardware toward accelerating its AI capabilities as the core growth driver.