Meta Platforms, Inc. stunned the tech world on October 31, 2024, by announcing it would eliminate 11,000 jobs—approximately 13% of its global workforce—in a bid to rein in costs and refocus on artificial intelligence and the metaverse. Unlike its earlier rounds of layoffs on November 30, 2022 (11,000 jobs) and March 31, 2023 (10,000 jobs), this marked the culmination of successive cost-cutting cycles under CEO Mark Zuckerberg’s leadership.
The latest wave of job cuts was virtually unprecedented in both scale and speed. Meta’s workforce had ballooned to over 85,000 employees by mid-2024, fueled by massive hires in Reality Labs, AI research, and content moderation to support its transition into a “metaverse” company. However, stagnating ad revenues and slowing user growth across Facebook and Instagram forced the company to reassess its spending. In the third quarter of 2024, Meta reported a 7% year-over-year decline in ad revenue, marking the first such drop since the pandemic.
In an internal memo, Zuckerberg acknowledged the difficulty of these decisions: “Over the past weeks, we’ve worked to sharpen our focus on high-impact priorities. Today’s actions, though painful, are necessary to ensure we can continue to invest in the most important long-term projects—AI, Reality Labs, and foundational research.” He pledged that employees impacted by this round would receive generous severance, including six months’ salary plus benefits, prorated bonuses, and extended healthcare coverage.
Although Meta did not break down the cuts by function, insider sources told Business Insider that Reality Labs (responsible for Oculus, Quest, and Metaverse development) saw the deepest reductions—nearly 30% of its 25,000 employees—reflecting the faltering consumer adoption of VR headsets. Engineering teams focused on core platforms (Facebook, Instagram, WhatsApp) faced a smaller but still significant 10% headcount reduction, primarily among mid-level managers and content review specialists.
Investor reaction was mixed. Meta’s stock dipped 2.4% in after-hours trading, but analysts noted the company’s free cash flow would improve by an estimated $3 billion in 2025 as a result of the layoffs. Morgan Stanley commented, “These cuts are a necessary recalibration. Meta has proven its resilience before, and refocusing resources on high-return areas should placate investors in the near term.”
Industry observers pointed out that Meta’s successive layoffs reflect broader pressures on Big Tech to deliver profits amid rising interest rates and intensifying regulatory scrutiny. Teresa Varma, a senior analyst at Gartner, observed, “Meta’s path from hyper-expansion to disciplined cost management mirrors that of other tech giants. The key question now is whether the company can maintain its innovation pace with a leaner team.”
Social media buzzed with reactions from current and former employees. On LinkedIn, a former content moderator shared, “After three rounds of layoffs, the uncertainty is nerve-racking. Many of us joined Meta for stability and mission-driven work—now we can barely plan more than a month ahead.” On Twitter, AI researcher @deepneuronal wrote, “Meta’s pivot to prioritize AI is clear, but losing senior talent in Reality Labs could slow down crucial research.”
Regulatory bodies in Europe and the U.S. are monitoring the developments closely. The UK’s Competition and Markets Authority (CMA) issued a statement urging large employers to engage with local workforce agencies to mitigate the economic impact. In California, state lawmakers called for Meta to increase transparency around severance terms and rehire commitments for affected workers.
Despite the upheaval, Meta reaffirmed its commitment to its long-term vision. The company plans to make selective hires in AI engineering, machine learning infrastructure, and augmented reality software later in 2025. Zuckerberg closed his memo by stating, “Our mission to bring the metaverse to life remains unchanged. By optimizing our resources today, we position Meta to lead the next wave of digital innovation.”
As Meta embarks on this third major layoff, the tech community will be watching to see if the company’s streamlined operations translate into renewed growth in user engagement and advertising revenue—or if further structural adjustments lie ahead.
