Meta cuts 700 jobs, as it doubles down on AI

Meta, the social media giant, has reportedly cut 700 jobs, amid rumours of 20% workforce reduction. According to The New York Times report, the job cuts were announced soon after Meta rolled out higher pay packages for the executive-level positions, as the company bets big to retain talent.

Meta is said to cut jobs across teams and regions as the company plans a broader restructuring to expand its artificial intelligence (AI) efforts. The report quoted a Meta Spokeperson saying, “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.”

On March 24, Meta employees also received an HR email encouraging employees to work from home, and that more information will be shared later, creating speculation for further layoffs and internal restructuring.

What makes the layoff more concerning is that Meta reportedly announced a new stock-based pay plan for six of its executives, with a potential earning of up to $921 million each over the next five years. With the move, Meta plans to retain top talent to remain competitive in the AI race.

Furthermore, Meta projects $162–$169 billion in 2026 expenses, with the majority of it will be investment in AI talent and infrastructure.

Meta’s broader layoff plans

According to a previous Reuters report, Meta is just getting started with layoffs as it is reported to cut 20% of its workforce, affecting more than 16000 employees. This could impact teams across divisions, including Reality Labs division and its social media teams, and several regions as well. It has also informed higher management to start preparing for the workforce reduction, while going big on its AI efforts.