Meta recently informed some employees to work from home, signaling potential shifts within the company. Those in the wearables and advertising divisions were the first to receive this directive. Leadership plans to share more details soon.
Meta’s wearables group, which focuses on products like AI glasses and augmented reality, is a significant focus for the company moving into 2026. As per their latest earnings report, this area is one of their “key investment areas.”
However, alongside this news, Meta is reportedly preparing for layoffs. Earlier reports indicated that management is devising plans to cut costs, which could impact a significant portion of its workforce. According to Reuters, as many as 16,000 employees—about a fifth of Meta’s nearly 79,000 staff—might face layoffs.
These adjustments occur as the company doubles down on AI investment, reflecting a major shift in strategy. Earlier this year, Meta laid off 10-15% of employees in its Reality Labs division as it pivots away from the Metaverse.
In a bid to motivate leaders, Meta also rolled out stock compensation programs for senior executives, excluding CEO Mark Zuckerberg. This plan includes increasing the number of restricted stock units, which vest over time, and offering stock options that become available by March 2031.
While these changes come amid significant re-evaluations of their business model, Meta’s stock has seen a nearly 3% decline over the past year. As the company navigates these challenges, it’s clear that the future direction may greatly influence employee morale and market performance.
Understanding these dynamics is essential for observing how major tech companies adapt in a rapidly changing industry.
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