WASHINGTON (dpa-AFX) - Meta on Wednesday, announced the layoff of approximately 700 employees as part of its ongoing strategy to reallocate resources towards artificial intelligence.
The majority of these layoffs are concentrated in Reality Labs, as well as in certain positions related to recruitment, sales, and Facebook operations.
These workforce reductions were implemented shortly after Meta unveiled a new stock compensation initiative for six senior executives, including Andrew Bosworth, Chris Cox, and Susan Li, which could potentially amount to $921 million each over a five-year period, contingent upon achieving aggressive growth targets.
Mark Zuckerberg has been intensifying Meta's focus on artificial intelligence, significantly increasing investment in infrastructure and talent while concurrently scaling back expenditures in less critical areas.
Meta has stated that the stock program aims to retain key leadership talent and align executives with the company's long-term growth objectives, which include a goal to elevate the company's valuation from approximately $1.5 trillion to $9 trillion by the year 2031.
The company has forecasted a minimum expenditure of $115 billion for the current year, predominantly allocated to AI infrastructure investments such as the establishment of new data centers, as it advances towards sophisticated AI systems and enhanced productivity through automation.
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