Meta Plans 10% Workforce Cut, Freezes 6,000 Roles Amid Strategic Shifts in AI and Metaverse Investments

Meta Announces 10% Workforce Reduction Amid Strategic Shift

Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, has announced plans to reduce its workforce by 10%, equating to approximately 8,000 employees. This decision, detailed in an internal memo obtained by Bloomberg, also includes a hiring freeze for 6,000 currently open positions. The layoffs are scheduled to commence on May 20.

Chief People Officer Janelle Gale addressed employees, stating, We’re doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making. She acknowledged the difficulty of the decision, emphasizing that it would affect individuals who have made significant contributions to the company.

This move follows Meta’s substantial investments in the metaverse, which have yet to yield the anticipated returns. The company has also been heavily investing in artificial intelligence to remain competitive in the rapidly evolving tech landscape. Earlier this month, Meta introduced Muse Spark, a revamped AI product aimed at enhancing user engagement and platform capabilities.

The upcoming layoffs are part of a broader trend within Meta. In March 2026, the company laid off several hundred employees across multiple teams, including sales, recruiting, and the Reality Labs division. These cuts affected employees in the U.S. and other international markets, with some being offered alternative positions or relocation opportunities. A Meta spokesperson commented, Teams across Meta regularly restructure or implement changes to ensure they’re in the best position to achieve their goals.

In October 2025, Meta reduced its AI workforce by approximately 600 positions as part of an ongoing reorganization. Chief AI Officer Alexandr Wang explained in a memo that the reduction aimed to streamline decision-making processes and increase individual impact within the team. He noted, By reducing the size of our team, fewer conversations will be required to make a decision, and each person will be more load-bearing and have more scope and impact.

The company’s financial reports reveal significant expenditures in its Reality Labs division, responsible for virtual and augmented reality projects. In 2025, Reality Labs reported losses of $19.1 billion, up from $17.7 billion in 2024. Despite these losses, Meta continues to invest in VR and AR technologies, though it has recently shifted focus toward artificial intelligence initiatives.

Meta’s restructuring efforts have also led to changes in company policies and culture. In February 2025, Chief Technology Officer Andrew Bosworth addressed internal dissent regarding policy changes, stating that employees who disagreed with the new direction were free to leave the company. This response highlighted the company’s commitment to its strategic vision, even amid internal challenges.

The tech industry at large has seen similar workforce reductions. In April 2026, Snap Inc. announced a 16% reduction in its global workforce, affecting around 1,000 employees. The company cited advancements in artificial intelligence as a factor enabling the reduction of repetitive work and increased efficiency.

Meta’s current layoffs are part of a series of workforce reductions over recent years. In November 2022, the company confirmed 11,000 layoffs, amounting to 13% of its workforce at that time. CEO Mark Zuckerberg took responsibility for the decision, acknowledging that the company’s rapid expansion during the pandemic did not align with subsequent economic realities. He stated, I got this wrong, and I take responsibility for that.

As Meta continues to navigate the challenges of a dynamic tech industry, these strategic workforce adjustments reflect its efforts to balance innovation with operational efficiency. The company’s focus on artificial intelligence and the metaverse indicates a commitment to staying at the forefront of technological advancements, even as it faces financial and organizational hurdles.