Meta May Cut 200 More Jobs Amid Ongoing AI Expansion

Meta is undergoing another workforce restructuring, planning to eliminate approximately 200 jobs in the United States as part of a broader shift toward an AI-centric strategy. The layoffs are heavily concentrated in California's Bay Area, specifically in Burlingame and Sunnyvale, and are expected to take effect over the coming months. According to reports from The Economic Times, citing documents from the California Employment Development Department, the affected roles span various functions, including sales, recruiting, and segments of Reality Labs, the division focused on virtual and augmented reality hardware.

Reports indicate that the cuts are highly targeted, with 124 positions slated for elimination in Burlingame and 74 in Sunnyvale, suggesting a strategic reduction rather than a company-wide sweep. The layoffs are scheduled to be implemented by the end of May and are expected to be permanent. While some employees might be reassigned internally, the majority of the affected roles will be permanently removed. Even where internal transfers are offered, opportunities are limited, and in some cases, employees may need to relocate to accept alternative positions.

This latest move follows a larger-scale restructuring within Reality Labs. For instance, in January 2026, the company already cut over 1,000 jobs—approximately 10% of the department's workforce—as it attempted to reduce costs in a heavily loss-making division. Reality Labs remains central to the social media giant's long-term metaverse plans, but its high expenditures and uncertain short-term returns make it a frequent target for cost-cutting. Notably, the division has been under continuous financial pressure, with cumulative operating losses estimated at around $80 billion since 2020, including approximately $19.2 billion in losses in 2025 alone.

The recent layoffs come amid reports that the company, led by Mark Zuckerberg, may be preparing for even larger workforce reductions. In early March, news emerged that internal discussions explored the possibility of cutting up to 20% of the overall workforce (around 16,000 employees), although no final decision or timeline has been confirmed. If implemented, this would be the most significant layoff in the company's history, surpassing the massive cuts made during 2022 and 2023, when Meta eliminated over 20,000 positions during its "Year of Efficiency."

The primary driver behind these repeated restructuring efforts is Meta's aggressive pivot to AI. The company is heavily investing in AI infrastructure, including high-performance data centers, advanced chips, and large-scale models that support everything from content recommendations to advertising systems. Reports also highlight the company's increasing focus on AI deals. Meta recently acquired the AI agent social platform Moltbook to bring its team into advanced AI projects. In 2025, it acquired Manus, an autonomous AI agent platform, for approximately $2-3 billion, and also invested about $14 billion in Scale AI, bringing its founder, Alexandr Wang, to lead Meta's superintelligence lab. Previously, the social media giant stated that it might spend up to $135 billion on AI infrastructure alone in 2026.