Meta announced on Wednesday that it is laying off approximately 700 employees as part of its strategy to reallocate resources towards artificial intelligence (AI). The majority of layoffs will occur in Reality Labs as well as various recruitment, sales, and Facebook operations roles.
This decision follows the introduction of a stock compensation initiative for six senior executives, potentially valued at $921 million each over five years, contingent on achieving aggressive growth targets. Meta aims to increase its valuation from $1.5 trillion to $9 trillion by 2031, forecasting a minimum expenditure of $115 billion this year primarily focused on AI infrastructure investments, including the development of new data centers.
