News

Will Meta’s $135 Billion AI Investment Pay Off After Layoffs?

The layoffs raise questions about the balance between innovation and workforce stability

Written By : Poulami Saha
Reviewed By : Sankha Ghosh

Mark Zuckerberg’s Meta is laying off several hundred employees as part of a restructuring effort affecting multiple teams across the company. The job cuts have reportedly impacted many departments, including recruiting,  sales, and the Reality Labs hardware division.

A Bloomberg report has cited people familiar with the matter. They have said that the sudden mass layoffs have impacted them severely. 

Meta Initiates Mass Layoffs

The layoffs are said to affect employees in the US and also employees from other international locations. The total number of impacted employees recorded is over 1,000. Meta had roughly 79,000 employees globally at the beginning of the year.

Some employees who lose their current roles may still have the opportunity to remain at the company. The report also suggests that some employees are being offered different positions within Meta. Some employees could also be asked to relocate to another location in case they wish to continue in the same workplace.

Meta’s Future Plans

To prepare employees for the layoffs, some members of the Reality Labs division were reportedly asked to work remotely on March 25. A Meta spokesperson said in the report, “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.” 

This is not the first round of mass layoffs that Meta implemented in 2026. In January, Reality Labs reduced its workforce by more than 1,000 employees. This was due to the company’s shift to focus on AI-powered wearable devices.

The news comes during a time when Meta is heavily investing in AI. Meta has projected to record capital expenditures this year. The investment made for the artificial intelligence project has potentially reached as much as $135 billion. The tech giant has been among the most dedicated tech firms in spending on AI development and infrastructure.

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