Meta is laying off hundreds of employees as it pours money into AI | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAIPolicyHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.Hamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessSee all techReviewsExpandSmart Home ReviewsPhone ReviewsTablet ReviewsHeadphone ReviewsSee all reviewsScienceExpandSpaceEnergyEnvironmentHealthSee all scienceEntertainmentExpandTV ShowsMoviesAudioSee all entertainmentAIExpandOpenAIAnthropicSee all AIPolicyExpandAntitrustPoliticsLawSecuritySee all policyGadgetsExpandLaptopsPhonesTVsHeadphonesSpeakersWearablesSee all gadgetsVerge ShoppingExpandBuying GuidesDealsGift GuidesSee all shoppingGamingExpandXboxPlayStationNintendoSee all gamingStreamingExpandDisneyHBONetflixYouTubeCreatorsSee all streamingTransportationExpandElectric CarsAutonomous CarsRide-sharingScootersSee all transportationFeaturesVerge VideoExpandTikTokYouTubeInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersArchivesStoreVerge Product UpdatesSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.Meta is laying off hundreds of employees as it pours money into AIComments DrawerCommentsLoading commentsGetting the conversation ready...TechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechAICloseAIPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AINewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsMeta is laying off hundreds of employees as it pours money into AIThis latest round of layoffs impacts workers on Reality Labs, as well as Meta’s recruiting, social media, and sales teams.This latest round of layoffs impacts workers on Reality Labs, as well as Meta’s recruiting, social media, and sales teams.by Emma RothCloseEmma RothNews WriterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Emma RothMar 25, 2026, 9:10 PM UTCLinkShareGiftImage: Cath Virginia / The VergeEmma RothCloseEmma RothPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Emma Roth is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.Meta is laying off hundreds of employees across its company, according to reports from The New York Times, NBC News, and The Information. The job cuts impact workers on Meta’s recruiting, social media, and sales teams, along with Reality Labs, the division that develops the company’s smart glasses and virtual reality headsets.“Teams across Meta regularly restructure or implement changes to ensure they’re in the best position to achieve their goals,” Meta spokesperson Tracy Clayton says in an emailed statement to The Verge. “Where possible, we are finding other opportunities for employees whose positions may be impacted.”Clayton declined to specify how many roles are impacted. Meta had almost 79,000 workers as of December 2025.Meta has been distancing itself from its “metaverse” namesake in recent months, with the company projected to spend as much as $135 billion as it continues its AI data center buildout and snags a deal to use Arm’s first CPU in them.The company also laid off at least 1,000 workers on its Reality Labs team in January, shuttered three VR studios, axed its work-focused metaverse platform, and halted new content for its VR fitness app Supernatural. In February, Meta said it would shut down the VR version of its 3D social platform Horizon Worlds before reversing the decision weeks later, saying it will be available to download “for the foreseeable future.”Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Emma RothCloseEmma RothNews WriterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Emma RothAICloseAIPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AILaborCloseLaborPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All LaborMetaCloseMetaPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All MetaNewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechMost PopularMost PopularNvidia CEO Jensen Huang says ‘I think we’ve achieved AGI’Welp, I bought an iPhone againOpenAI just gave up on Sora and its billion-dollar Disney dealSony and Honda ain’t feelin’ the Afeela anymoreDonut Lab’s solid-state battery could barely hold a charge after getting damagedThe Verge DailyA free daily digest of the news that matters most.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice. 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Meta Corporation is undertaking a significant strategic shift characterized by substantial workforce reductions and a heightened focus on artificial intelligence, as reported by multiple news outlets including The New York Times, NBC News, and The Information. The company’s actions encompass a series of layoffs impacting approximately hundreds of employees, specifically targeting divisions within Reality Labs – the entity responsible for its smart glasses and virtual reality hardware – alongside restructuring efforts within the recruiting, social media, and sales teams. According to a statement from Meta spokesperson Tracy Clayton, these relocations are intended to optimize the organization for achieving strategic objectives, acknowledging the inherent adjustments involved in organizational dynamics.

The reported job cuts coincide with what is projected to be a considerable investment, potentially reaching $135 billion, directed toward the development and operation of AI-powered data centers. This investment underscores a deliberate redirection of resources away from the company’s previously articulated “metaverse” strategy, a concept that has experienced diminishing returns in recent quarters. The strategy involved a series of prior layoffs totaling at least 1,000 positions within Reality Labs and actions such as the closure of VR studios, the discontinuation of the work-focused metaverse platform, and the shelving of new content for its VR fitness app, Supernatural. Notably, recent attempts to revive the Horizon Worlds VR platform, a centerpiece of the metaverse strategy, have been repeatedly halted and subsequently reinstated, indicative of a fluid and evolving approach.

The shift reflects a broader industry trend, mirroring a strategic recalibration of major technology firms around the burgeoning capabilities of generative AI. The focus on Arm’s first CPU for these data centers demonstrates a proactive move towards leveraging cutting-edge technological advancements within the AI landscape. Despite these adjustments, Meta remains committed to utilizing Arm’s technology, signifying a sustained investment in the development of a robust AI infrastructure. Further complicating the situation, the company has attempted to limit creator revenue for foreign influencers with X, but subsequently intervened with Musk.

These developments highlight a period of significant transformation at Meta, characterized by a move away from its initial metaverse ambitions and an intensified investment in AI technologies. The layoffs represent a direct consequence of this strategic realignment, signaling a prioritization of data center development and AI infrastructure investment over broader metaverse initiatives— a testament to the rapidly changing priorities within the technology sector.