Why Meta stock is rising after reports say hundreds will lose jobs across key divisions - here's which teams are impacted and what Meta plans to do next

Meta stock price today: Shares of Meta moved higher on Wednesday after reports said that the company is cutting several hundred jobs across multiple divisions.

Meta Stock Rises After Layoff Reports: Which Teams Are Affected

The layoffs, which affect teams including Facebook, global operations, recruiting, sales, and Reality Labs, come as the company continues to realign its priorities, as per a CNBC report.

Meta Employees Offered New Roles Amid Restructuring

Despite the job cuts, some employees are being offered new roles within the company, though certain positions may require relocation.


Meta spokesperson told CNBC that, “Teams across Meta regularly restructure or implement changes to ensure they’re in the best position to achieve their goals. Where possible, we are finding other opportunities for employees whose positions may be impacted,” as quoted in the report.

Why Meta Is Cutting Jobs While Investing in AI

The market reaction highlights investor focus on Meta’s broader strategy. The company has been pouring billions into artificial intelligence, working to catch up with competitors like OpenAI, Anthropic, and Google. Meanwhile, it continues to scale back parts of its virtual reality business under Reality Labs, where earlier cuts this year impacted more than 1,000 roles.

Meta’s AI Expansion and Hugo Barra’s Return

Meta has also been actively strengthening its AI capabilities. A recent licensing deal with startup Dreamer will bring its team into Meta Superintelligence Labs, marking the return of Hugo Barra, who previously worked on the company’s virtual reality efforts.

Meta’s New Stock Incentive Plan for Top Executives

Alongside these changes, Meta is introducing a new stock option incentive program for top executives, including Susan Li, Andrew Bosworth, Christopher Cox, and Javier Olivan. The plan is designed to retain leadership as the company makes what it describes as a major long-term bet on artificial intelligence, as per the CNBC report.

A Meta spokesperson told CNBC that, “This is a big bet. These pay packages will not be realized unless Meta achieves massive future success, benefiting all of our shareholders. As with all stock options, there is only value if the share price meaningfully exceeds the exercise price, and in this case, it must be on an exceedingly aggressive 5-year timeline,” as quoted in the report.

FAQs

How many employees is Meta laying off?
The company is cutting several hundred jobs across multiple divisions.

Which teams are affected by Meta layoffs?
Teams include Facebook, global operations, recruiting, sales, and Reality Labs.