Meta Platforms is laying off several hundred employees across multiple teams as it prepares for rising costs tied to artificial intelligence investments.
The cuts, announced Wednesday, affect divisions including Facebook, recruiting, sales, global operations, and the company's virtual reality unit, Reality Labs.
The layoffs come as Meta forecasts total expenses between $162 billion and $169 billion in 2026.
The company is increasing spending to compete in the fast-growing AI space, where rivals like OpenAI, Anthropic, and Google are also investing heavily.
A Meta spokesperson said the changes are part of ongoing restructuring efforts.
"Teams across Meta regularly restructure or implement changes to ensure they're in the best position to achieve their goals," the company said in a statement, Reuters reported.
"Where possible, we are finding other opportunities for employees whose positions may be impacted."
Some affected workers are reportedly being offered new roles within the company, though certain positions may require relocation.
The latest layoffs are smaller than earlier reports suggesting deeper cuts. Earlier this month, Reuters reported that Meta had considered reducing as much as 20% of its workforce. As of December 31, the company employed nearly 79,000 people.
Meta begins laying off hundreds of employees, impacting its Reality Labs virtual reality division and at least four other divisions, a source familiar with the matter tells NBC News. https://t.co/VnHDUydYgV
— NBC News (@NBCNews) March 26, 2026
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Meta Bets Big on AI With Billions in New Investments
Meta has been shifting its focus toward artificial intelligence, investing billions to develop advanced tools and hire top talent in the field.
The company is also increasing employee compensation to attract skilled engineers and researchers.
This strategy reflects a broader push to strengthen its position in AI, which executives see as a key driver of future growth.
Reality Labs, which builds virtual reality products like the Quest headset and Horizon Worlds platform, has been a major area of restructuring.
According to CNBC, earlier this year, the division cut more than 1,000 jobs, about 10% of its workforce, as Meta reviewed its long-term plans for virtual reality.
At the same time, the company is offering stock-based incentives to top executives to retain leadership during this period of heavy investment.
A spokesperson described the approach as a long-term bet, noting that rewards depend on the company's future success.
"This is a big bet," the spokesperson said, adding that the incentives will only have value if Meta achieves strong growth in the coming years.
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