Meta Lays Off 700 Employees in One Day: Reality Labs Hit Again as Resources Shift to AI

Meta confirmed on Wednesday that it laid off about 700 employees, affecting departments including Reality Labs, Facebook, recruitment, sales, and global operations. Some employees will have internal transfer opportunities. This is the second round of layoffs targeting Meta's metaverse team this year; in January, over 1000 positions in Reality Labs (about 10% of the department) were cut.

A Meta spokesperson said teams regularly restructure or adjust to ensure they are in the best position to achieve goals. The layoff news contrasts sharply with the executive option incentive plan disclosed the previous day. By the end of 2025, Meta had approximately 79,000 employees, and its 2026 capital expenditure guidance is $115 billion to $135 billion, most of which will be used for AI infrastructure construction.