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Meta began laying off hundreds of employees on Wednesday, affecting its Reality Labs virtual reality division and at least four other divisions, a source familiar with the matter told NBC News.
The job cuts are part of a broader reorganization of the company. A Meta spokesperson said in a statement that “Meta teams regularly restructure or implement changes to ensure they are in the best position to achieve their goals,” adding that the company would work to find “other opportunities for employees whose positions may be affected.”
The layoffs will also affect employees in Facebook’s recruiting, sales, global operations and social media teams. The layoffs in these divisions are not related to each other, according to the source.
Although most affected workers were notified Wednesday, others could be notified in the coming weeks, depending on circumstances such as location.
Some employees are offered new roles, while others may have the opportunity to relocate.
Earlier this year, CEO Mark Zuckerberg signaled more investments and a shift toward greater reliance on AI.
In a January Facebook post Following the release of the tech giant’s fourth-quarter and full-year 2025 results, Zuckerberg said AI was going to have a significant impact on the company in 2026. “We’re starting to see projects that previously required large teams now being done by a single, very talented person,” he said.
Facebook’s parent company noted in its quarterly earnings report that for 2026, it expected Reality Labs operating losses similar to 2025 levels. Meta reported an operating loss of $6.02 billion on 2025 revenue of $955 million.
It also projects that employee compensation would be the second largest contributor to total spending growth, including “2,026 hires to support our priority areas, particularly AI.”
Meta employed nearly 79,000 workers as of Decemberan increase of 6% year over year.
The company, formerly known as Facebook, changed its name to Meta in 2021 to reflect the focus on its virtual reality project, the Metaverse. But as Meta invests more in AI, it has continued to cut jobs in its VR division since at least the start of the year.