【AI+Meta】Massive AI Investment; Meta Launches New Round of Layoffs Affecting Hundreds

According to reports, Facebook’s parent company Meta (U.S.: META) has initiated a new round of layoffs as part of its restructuring efforts. The layoffs involve multiple departments, including sales, recruiting, and Reality Labs hardware division.

Sources familiar with the matter say the layoffs will affect fewer than 1,000 employees. Some impacted staff may be offered transfer opportunities or may need to relocate to continue their roles. It is also reported that some Reality Labs employees have been asked to work remotely to accommodate the layoffs.

“Meta teams regularly reorganize or adjust to ensure they are in the best possible state to achieve their goals,” a Meta spokesperson said in a statement. “Whenever possible, we seek to find other opportunities for positions or employees who may be affected.”

As of early this year, Meta has approximately 79,000 employees worldwide. This is the company’s second round of layoffs this year. In January, Reality Labs laid off over 1,000 employees, about 10% of its hardware staff, and shut down some VR content studios, redirecting resources toward AI-related applications and product development.

Strategy Shift: Increasing Investment in AI

In recent years, Meta has continuously adjusted its strategy, gradually reducing its metaverse business and increasing its focus on AI. Market analysts point out that Meta’s layoffs and restructuring are mainly responses to cost pressures from AI investments. The company has estimated that this year’s total AI project expenditure will reach between $162 billion and $169 billion.

As generative AI competition heats up, Meta is accelerating its efforts to catch up with rivals like OpenAI, Anthropic, and Google. The company has already introduced AI assistant tools internally to aid in software development and other business processes.