Facebook Parent Meta Announces More Layoffs in San Francisco; Plans $115 Billion Push into AI Tools to Boost Output

Meta announced a further reduction of staff at its San Francisco Peninsula locations, aligning its resources with a strategic focus on wearable devices. 

Details of the latest job cuts 

The company filed the layoff notice with California’s Employment Development Department on February 6, 2026.  

A total of 102 positions will be eliminated across corporate sites in San Mateo County and the Menlo Park headquarters. The move follows an earlier reduction of 318 roles at the same campus. 

Shift from metaverse to wearables 

In an internal email, a Meta spokesperson said the company is moving investment from the metaverse to wearable technology. Savings from the cuts will be reinvested to support growth in the wearables segment during the current year.  

This follows a 10% scaling back of the Reality Labs division, which oversees augmented reality and metaverse projects. 

Read More: Meta Launches ‘Scam Se Bacho’ 3.0 With SEBI To Fight Digital Scams! 

Broader industry context 

Meta’s restructuring occurs alongside a wider trend of technology firms citing artificial intelligence as a driver for workforce reductions. As per news reports, AI‑related layoff notices totalled around 55,000 in the United States last year.  

Companies such as Salesforce, Pinterest, Google and Amazon have also announced cuts, with Amazon reducing 666 roles in Silicon Valley as part of an AI‑focused plan. 

Headcount and AI investment 

Despite the reductions, Meta reported a headcount of over 78,000 employees at the end of December 2025, a 6% increase from the previous year.  

The firm is investing more than $115 billion in AI tooling to boost productivity, a strategy that CEO Mark Zuckerberg says enables a single employee to perform the work of an entire team. 

Conclusion 

Meta’s decision to cut 102 jobs at its San Francisco Peninsula offices reflects a reallocation of resources from metaverse initiatives to wearable technology, while aligning with a broader industry pattern of AI‑driven workforce optimisation. 

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