Meta lays off 700 employees, focusing on artificial intelligence; executives can receive up to $921 million in stock awards.

Gate News reports that Meta laid off approximately 700 employees on Wednesday, mainly affecting Reality Labs as well as some positions in recruiting, sales, and Facebook departments. This move indicates the company’s strategic focus is shifting further toward artificial intelligence. Despite the layoffs, Meta continues to make significant investments in infrastructure development and top talent acquisition.

The day before the layoffs, Meta announced a new stock option plan for six executives, with a term until 2031, tied to performance targets. According to Equilar analysis cited by multiple media outlets, some executives could receive up to $921 million in stock awards under this plan, with the highest incentives contingent on the company’s market value reaching $9 trillion. This initiative highlights Meta’s ambitions and strategic adjustments in the AI field.

Over the past year, Mark Zuckerberg has been actively pushing the company’s AI development, including a superintelligence strategy and substantial investments in computing power, data centers, and research talent. During the January earnings call, Meta revealed that by 2026, capital expenditures are expected to range between $115 billion and $135 billion to build data centers and other systems supporting AI goals.

Reality Labs is the most affected department in this restructuring. Insider reports that impacted employees have been informed they can work remotely before layoffs. Previously, Meta had planned to cut 10% to 15% of employees in this division. Analysts note that the layoffs contrast sharply with the executive incentives, reflecting Meta’s priority to invest in high-potential AI areas while lower-priority departments face cuts.

Overall, Meta demonstrates a commitment to resource reallocation through layoffs and executive incentives, while heavily investing capital to advance AI development, further strengthening its competitive position in the tech industry. For investors and industry observers, Meta’s performance in AI research and strategic implementation will directly influence its long-term market value and influence.