Meta, according to The New York Times, has laid off around 700 employees, at almost the same time it rolled out massive pay packages for its top executives, a step that shows just how much the company is betting on artificial intelligence.
On March 25, the company let go of hundreds of employees, according to the NYT, citing a person familiar with the matter. The layoffs are part of the company’s ongoing efforts to reshape itself, with a stronger focus on artificial intelligence. Meta, which owns platforms like Facebook and WhatsApp, has been trying to reinvent itself for a while now.
Big payouts for top bosses
Just a day earlier, Meta had announced a new stock-based pay plan for six of its top executives. Over the next five years, some of them could see their compensation rise by as much as $921 million each.
The company said the idea behind this move is to hold on to top talent as competition in the AI space heats up, and push the company toward bigger, more ambitious goals.
Mark Zuckerberg has made it clear that Meta is aiming for something much bigger than just social media or even the metaverse. Zuckerberg has spoken about building “superintelligence,” describing it as a powerful AI that could act like the ultimate personal companion. That goal is now shaping how the company spends, hires, and even lets people go.
Meta Layoffs across teams
According to Reuters, these layoffs are still smaller compared to what was being discussed earlier this month. Reuters had reported that the company was planning much bigger cuts, possibly affecting 20% or more of its workforce, and that top executives had already asked senior leaders to start preparing for those reductions.
This latest round, however, is more limited in size. According to an earlier report by The Information, the layoffs are hitting several key areas. These include Meta’s Reality Labs division, its social media teams, and even recruiting operations.
Meta has tried to explain the move as part of regular changes inside the company. In a statement, a spokesperson said, “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.”
Meta has already said it expects total expenses to reach between $162 billion and $169 billion in 2026. A big part of that is going into AI, where the company is spending millions to hire top talent and build new systems. At the same time, employee compensation costs are also going up, adding more pressure. As of December 31, Meta had nearly 79,000 employees, according to its annual filing.