Meta cuts roughly 700 jobs as it shifts resources toward artificial intelligence infrastructure

• Meta is forecasting up to $169bn in spending for 2026, largely tied to AI expansion.
• Mark Zuckerberg says AI will allow smaller teams to deliver work once handled by larger groups.
• Earlier reports suggested Meta may be planning to cut up to 20% of its workforce.

Meta has laid off hundreds of employees across multiple teams as the company continues to redirect resources toward artificial intelligence development and infrastructure.

As reported by The Information, the job cuts affect workers in recruiting, social media, sales and the company’s Reality Labs division, which develops virtual reality headsets and smart glasses. 

A person familiar with the matter told The Register roughly 700 roles were impacted.

"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,” said a Meta spokesperson. 

AI-driven cuts?

The layoffs come as Meta ramps up spending on AI, with forecasts suggesting total expenses could reach between $162 billion and $169bn in 2026, largely driven by data centre construction and competition for specialised talent. 

CEO Mark Zuckerberg has repeatedly stated that AI tools will allow smaller teams to complete work that previously required significantly larger groups.

The latest cuts follow a series of setbacks for Reality Labs, including the closure of several virtual reality studios and reductions to metaverse-related initiatives earlier this year.

Moreover, the cuts may represent only an initial phase of a broader restructuring. PocketGamer.biz previously reported that Meta was considering plans to cut up to 20% of its workforce.