Meta is once again restructuring its workforce, planning to eliminate around 200 jobs in the United States as part of a broader strategic pivot toward AI. The layoffs are concentrated in California’s Bay Area, particularly in Burlingame and Sunnyvale, and are expected to take effect in the coming months, reports The Economic Times, citing filings with California’s Employment Development Department. The roles being affected span multiple functions, including sales, recruiting, and segments of Reality Labs, the company’s division focused on virtual and augmented reality hardware.
According to the report, the job cuts are highly localized, with 124 roles set to be eliminated in Burlingame and 74 in Sunnyvale, indicating a targeted rather than company-wide reduction. The layoffs are scheduled to be implemented by late May and are expected to be permanent. While some employees may be reassigned within the company, a significant number of the affected roles will be permanently eliminated. Even where internal redeployment is offered, opportunities are limited, and in some cases, employees may be required to relocate to take up alternative positions.
This latest move follows a larger round of restructuring within Reality Labs earlier in 2026. For example, in January, the company had already cut over 1,000 jobs – about 10% of the division’s workforce – as it tried to reduce costs in a unit that has been losing significant amounts of money. Reality Labs remains central to the social media giant’s long-term metaverse plans, but its high spending and uncertain short-term returns have made it a frequent focus for cost-cutting. Notably, the unit has been under continuous financial pressure, with total operating losses estimated at around $80 billion since 2020, including about $19.2 billion in losses in 2025 alone.
The latest layoffs also come amid reports that the Mark Zuckerberg-led firm could be preparing for a much larger workforce reduction. In early March, it was indicated that the company had internally discussed the possibility of cutting up to 20% (~ 16,000 employees) of its overall workforce, although no final decision or timeline has been confirmed. If implemented, such a move would represent the most significant downsizing in the company’s history, surpassing the large-scale layoffs carried out during 2022 and 2023, when Meta eliminated more than 20,000 jobs as part of its ‘year of efficiency’.
The main reason behind these repeated restructuring efforts is Meta’s aggressive shift toward AI. The company is investing heavily in AI infrastructure, including high-performance data centers, advanced chips, and large-scale models that power everything from content recommendations to advertising systems. Reports have also highlighted the company’s growing focus on AI deals. The company recently acquired the AI agent social platform Moltbook to bring its team into advanced AI projects. In 2025, it bought Manus, an autonomous AI agent platform, for around $2-3 billion, and also invested about $14 billion in Scale AI, bringing its founder, Alexandr Wang, to lead Meta’s Superintelligence Labs. Earlier, the social media behemoth had indicated that it could spend up to $135 billion on AI infrastructure alone in 2026.
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