As of May 20, 2026, Meta begins laying off 8,000 employees, 10% of its workforce, in its largest restructuring since 2023. The move comes in the same quarter where the company reported record revenue of $56.31 billion, a 33% increase from the previous year. The cuts affect Reality Labs, Facebook, recruiting, sales, and global operations, totaling 14,000 positions eliminated after canceling 6,000 open vacancies.
Reality Labs and the Cost of Betting on the Metaverse 💸
The virtual and augmented reality division, Reality Labs, is one of the focuses of the adjustment. Although Meta invests billions in this sector, the financial results do not follow: the unit's operating losses exceed $15 billion annually. The layoffs in this area aim to cut costs in hardware and software, while the company prioritizes generative artificial intelligence as a new revenue driver. The restructuring also affects engineering teams at Facebook, which are reducing their size to focus on higher-return products.
Layoffs with Bonuses: The Drama of Being Profitable 😅
The curious thing about this case is that Meta is laying off people while making more money than ever. Corporate logic says you have to be agile, but firing 10% of the workforce with record revenue sounds more like cosmetic surgery than necessity. Those affected leave with severance pay, of course, while Mark Zuckerberg rubs his hands together over the metaverse that still hasn't taken off. The message is clear: in Silicon Valley, having results doesn't save you from the guillotine.