Meta Extends Lucrative Stock Benefits to Top Executives Amid Company-Wide Layoffs

Meta Lays Off 700 Employees Amid Metaverse Retreat and AI Pivot

Company Overview Meta has announced a significant restructuring effort, with approximately 700 employees impacted across multiple teams, including Reality Labs, the division responsible for virtual reality and metaverse development.

Organisational Changes The layoffs have been confirmed by a Meta spokesperson, who stated that the company regularly restructures or implements changes to ensure its teams are in the best position to achieve their goals.

Executive Incentives Just hours prior to the layoffs, Meta introduced a new stock option programme for its top executives, which could boost compensation for select leaders by as much as $921 million each over the next five years, contingent on the company achieving a $9 trillion market capitalisation by 2031.

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Market Valuation Meta's current market valuation stands at approximately $1.5 trillion.

Metaverse Ambitions The job cuts come as Meta scales back its metaverse ambitions, including plans to halt future development tied to virtual reality headsets. Reality Labs has been a significant cost centre for the company, with reported cumulative losses exceeding $80 billion. This is the second round of layoffs in the division this year, following approximately 1,000 roles being cut in January.

Potential Layoffs The latest job cuts could be part of a broader restructuring effort, with previous reports indicating that Meta may plan to eliminate as many as 15,000 roles globally.

AI Pivot Meta has been accelerating its shift towards artificial intelligence, making acquisitions and hiring talent to strengthen its capabilities in agentic AI systems. The company has acquired firms such as Moltbook and Manus AI, and hired executives from AI startup Dreamer to build out its next phase of growth. However, this pivot comes with rising costs, with Meta forecasting capital expenditure between $162 billion and $169 billion in 2026, largely driven by investments in AI infrastructure, including data centres.

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