Meta has begun a fresh round of job cuts as the US technology giant redirects significant resources towards artificial intelligence (AI), signalling a continued shift away from its earlier metaverse ambitions and towards next-generation computing infrastructure.
Workforce Reduction Focuses on Key Divisions
Meta has reportedly started laying off around 700 employees, according to sources familiar with the matter. The reductions are said to be concentrated within its Reality Labs division, core social media operations, and recruitment teams.
One affected employee, a senior recruiter, shared on LinkedIn that her role had been eliminated after six years with the company, describing the decision as “especially tough” despite expressing pride in her work and gratitude for her time there.
In a statement, Meta said the restructuring is part of broader efforts to streamline operations and better align the business with its AI-focused strategy. The company added that it is attempting to redeploy affected staff where possible.
Zuckerberg Pushes Leaner Teams and AI Efficiency
Meta chief executive Mark Zuckerberg outlined earlier this year a vision for “flattening teams”, arguing that advances in AI mean smaller groups—or even individuals—can now deliver work that previously required large teams.
He emphasised a shift towards empowering highly skilled contributors, with the aim of accelerating product development for billions of users worldwide. The approach mirrors a wider trend across the global tech sector, including in the UK, where firms are increasingly prioritising productivity gains from automation and machine learning.
Reports of Larger Cuts Still Loom
While the current layoffs appear limited in scale, Reuters has reported that Meta could ultimately reduce its workforce by as much as 20 per cent—equivalent to roughly 15,000 roles.
As of January, the company employed approximately 78,800 people globally. A reduction on that scale would bring headcount closer to levels last seen in 2021.
Such potential cuts would be closely watched in Britain, where major tech firms—including those with offices in London, Cambridge and Manchester—have also been reassessing staffing levels amid economic pressure and rapid technological change.
Billions Poured Into AI Infrastructure
Meta’s restructuring comes alongside a dramatic increase in spending on AI development. The company’s costs rose by 24 per cent in 2025 to $118 billion (£93 billion), with projected expenditure for 2026 expected to reach between $162 billion and $167 billion.
A substantial portion of this—up to $135 billion—will be directed towards capital expenditure, including the construction of large-scale data centres required to support AI systems.
Meta is also investing heavily in proprietary hardware. Its in-house MTIA chips, first introduced in 2023, are being expanded with new generations designed to handle training and inference workloads for generative AI applications through to 2027.
Competition Intensifies in Global AI Race
The company is racing to compete with leading AI developers such as OpenAI and Google, as well as emerging players like Anthropic.
However, progress has not been without setbacks. Reports suggest Meta has delayed the release of its next AI reasoning model—codenamed “Avocado”—after underwhelming internal test results.
At the same time, the firm has offered highly lucrative compensation packages, reportedly reaching nine-figure sums, to attract top AI researchers—highlighting the fierce competition for talent in this rapidly evolving sector.
Strategic Bets and Uncertain Returns
Meta has also made high-profile investments, including a $14 billion stake in Scale AI, and appointed its co-founder, Alexander Wang, to lead its AI initiatives. The move reportedly led to tensions with senior figures, including former chief AI scientist Yann LeCun.
Despite the scale of investment, the financial return on AI remains uncertain. Speaking at a recent industry conference hosted by Morgan Stanley, Meta’s chief financial officer Susan Li acknowledged the difficulty in forecasting returns.
She noted that while infrastructure and staffing costs can be estimated with relative accuracy, predicting future demand for AI services—particularly the computing power required to run them at scale—remains a significant challenge.
Conclusion
Meta’s latest job cuts underline a decisive pivot towards artificial intelligence, with the company reshaping its workforce and committing vast sums to infrastructure and talent. While the long-term payoff remains unclear, the strategy reflects a broader transformation across the tech industry—one that is likely to have implications for employment, investment, and innovation both in the UK and globally.
Thomas Hardy is a contributor to OE Mag, covering news, politics, business, technology, sport, entertainment, and lifestyle. He focuses on clear, accurate reporting and useful information that helps readers stay informed about current affairs and developments that matter to them. His work highlights relevant stories, emerging trends, and key issues, presenting them in a balanced, accessible, and reader-friendly way.