Meta cutting several hundred jobs over Reality Labs, Facebook and more

The cuts are happening across several different organizations within the company, including Facebook, global operations, recruiting, sales and its virtual reality division Reality Labs, according to a source familiar with the company’s plans who asked not to be named because they are confidential.

Some impacted employees are being offered new roles within the company, the person said. In some cases, those new positions will require relocation.

“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,” a Meta spokesperson said in a statement.

The layoffs come as Meta has been refocusing its efforts and pouring billions of dollars into artificial intelligence, where the social media giant has been racing to catch up to rivals like OpenAI, Anthropic and Google.

The Information was first to report the cuts.

In January, Meta cut employees focused within its Reality Labs division and shut down a number of studios that were working on VR titles, CNBC previously reported. Those layoffs hit more than 1,000 jobs and would impact about 10% of that unit, which makes Quest VR headsets, and the Horizon Worlds virtual social network.

Meta shares rose nearly 3% earlier in March after Reuters reported that the company could slash over 20% of its workforce. A Meta spokesperson said at the time that “This is a speculative report about theoretical approaches.”

Meanwhile, Meta has also been continuing to bulk up on talent specializing in generative AI and related AI agents, which has become the company’s new area of focus.

The company’s latest effort included a licensing arrangement with the startup Dreamer, whose staff will join Meta Superintelligence Labs company’s AI technology. As a result, Dreamer co-founder Hugo Barra will return to Meta, having previously helped lead the company’s virtual reality efforts from 2017 through 2021.

Meta declined to comment on the terms of the deal.

The company revealed Tuesday evening in corporate filings that its top executives like finance head Susan Li, technology chief Andrew Bosworth, Chief Product Officer Christopher Cox and operating chief Javier Olivan will be recipients of a new stock option incentive program. The program is intended as a retaining tool for Meta’s top leaders while it continues heavily investing into artificial intelligence.

“This is a big bet,” a Meta spokesperson said in a statement. “These pay packages will not be realized unless Meta achieves massive future success, benefiting all of our shareholders. As with all stock options, there is only value if the share price meaningfully exceeds the exercise price, and in this case, it must be on an exceedingly aggressive 5-year timeline.”