Meta cuts 700 jobs as expenses head toward $169 billion by 2026

Meta has laid off around 700 employees as it accelerates investment in artificial intelligence, even as its projected expenses are set to climb as high as $169 billion by 2026.

The job cuts, reported by The New York Times, come at a time when the company is reshaping its workforce and cost structure to align with long-term AI ambitions. The move reflects a broader recalibration inside the tech giant as it shifts focus from legacy priorities to next-generation technologies.

AI PUSH DRIVES COSTS AND RESTRUCTURING

The layoffs are part of ongoing internal restructuring across teams, including Reality Labs, social media units, and recruiting operations, according to earlier reporting by The Information. Reuters had previously reported that Meta was considering deeper cuts, potentially affecting a much larger share of its workforce.

Meta has framed the reductions as routine organisational adjustments. A company spokesperson said teams “regularly restructure or implement changes to ensure they’re in the best position to achieve their goals,” adding that efforts are being made to redeploy affected employees where possible.

The cost pressures behind these decisions are mounting. Meta has already indicated that its total expenses could reach between $162 billion and $169 billion in 2026, with a significant portion earmarked for artificial intelligence infrastructure, talent, and product development.

EXECUTIVE PAY AND TALENT WAR INTENSIFY

The layoffs come just days after Meta unveiled a new stock-based compensation plan for six senior executives. According to reports, individual payouts could rise by as much as $921 million over the next five years.

The company has positioned these incentives as necessary to retain top leadership and compete aggressively in the global AI race, where talent has become a critical differentiator.

The contrast between workforce reductions and rising executive pay underscores the company’s strategic priorities, as it channels resources into areas expected to drive future growth.

STRATEGY SHIFTS TOWARD ‘SUPERINTELLIGENCE’

Chief executive Mark Zuckerberg has increasingly articulated a vision centred on advanced AI systems, including what he has described as “superintelligence” — technology capable of acting as a highly personalised digital assistant.

This ambition is now shaping decisions across hiring, investment, and organisational design. Meta, which owns platforms such as Facebook, Instagram, and WhatsApp, is effectively repositioning itself as an AI-first company.

The shift also comes amid heightened scrutiny of the company’s workforce decisions. As previously reported, Meta has faced legal challenges over layoffs that allegedly impacted older workers, while also pushing back against earlier reports suggesting cuts of up to 20% of its workforce.

WORKFORCE AND FUTURE OUTLOOK

As of the end of December, Meta employed nearly 79,000 people, according to its annual filings. 

While the current round of layoffs is smaller than earlier projections, it signals a continued willingness to recalibrate headcount in line with strategic priorities.

Looking ahead, the company’s trajectory will likely be defined by its ability to balance rising costs with returns on its AI investments. As spending intensifies and competition deepens, Meta’s workforce strategy is expected to remain fluid, with further adjustments possible as it pursues its long-term technological ambitions.