Meta Lays Off Hundreds of Staff to Offset AI Expenses
Meta is laying off hundreds of staff across its Reality Labs and recruiting units. The cuts aim to offset rising costs from heavy AI investments during 2026.
Meta Platforms, Inc. is reportedly preparing to lay off several hundred employees this Wednesday, with the cuts primarily targeting the Reality Labs division, recruiting operations, and social media teams. According to reports from The Information, a smaller number of positions within the company's sales unit will also be impacted. While these specific cuts represent only a small fraction of the total workforce, they arrive amid broader reports that the social media giant is planning more significant reductions. Earlier this month, it was indicated that the company might reduce its total headcount by 20% or more, with senior leadership already beginning the planning process for these sweeping changes. The move to trim staff numbers is largely seen as an effort to manage rising operational costs. The company is currently making massive investments in artificial intelligence, forecasting total expenses for 2026 to reach between $162 billion and $169 billion. These costs are exacerbated by the competitive market for AI expertise, which has seen the firm spend millions to recruit and retain specialized talent. As of December 31, the company reported a total of nearly 79,000 employees in its annual filing.
