Meta Cuts 200 Jobs in Silicon Valley as Zuckerberg Declares 2026 the 'Year of AI'

Meta Platforms has confirmed new layoffs affecting 198 employees across its Burlingame and Sunnyvale offices, with cuts set to take effect by the end of May 2026. This comes on top of approximately 700 cuts announced in March and 1,500 positions eliminated in the Reality Labs division in January.

The paradox is striking: while Meta is investing $115 to $135 billion in AI infrastructure this year, and Mark Zuckerberg has declared 2026 the company's "Year of AI," hundreds of employees in recruiting, sales, operations, and the VR division are losing their jobs.

The company is developing four new generations of proprietary AI chips codenamed MTIA 300, 400, 450, and 500, reducing its dependence on Nvidia. In parallel, internal model projects codenamed "Mango" and "Avocado" are in development, with the latter being a next-generation text-based language model aimed at surpassing the Llama series in coding and reasoning.

Meta's message mirrors that of Oracle, which is cutting nearly 10,000 positions: AI transformation pays dividends in infrastructure, not in headcount. For HR leaders and executives navigating AI transformation, Meta's quarterly waves of layoffs signal what lies ahead as AI investments mature.