Meta โขShifts Billions, restructures AI and Ad Teams Amidst Hardware Ambitions
MENLO PARK,โข CA โค- December 5, 2025 – Meta is undergoing notable restructuring,โ reallocating $3.25 billion โคpreviously earmarkedโ for its metaverse platform, Verse, into artificialโฃ intelligence initiatives. Simultaneously, the company is implementing workforce reductionsโ within its advertising teams asโค it refocuses resources on AI-driven ad solutions. These moves come as Meta โcontinues to investโค in Realityโฃ labs, its hardware division, recentlyโค bolstering its design โcapabilities withโค a high-profile โฃhire from Apple.
The financial โshift โขsignals a strategicโค pivot awayโค from the metaverse, which has faced challenges in user adoption and profitability. โขMetaโ will redirectโข the โ$3.25 billion to bolster its AI infrastructureโข and progress,aiming to enhance its advertising targeting,content proposal algorithms,and generative AI โcapabilities. Concurrently, the company is streamlining its ad teams, impacting roles focused on traditional advertising strategies as it prioritizes AI-powered solutions.
Thisโ restructuring occurs โalongside continuedโฃ investment in augmented and โคvirtual reality hardware. Meta recently appointed Alan Dye, a twenty-year Appleโ design veteran who โoversaw the โฃdesign of iOS, watchOS, and hardware products,โข to lead a new creativeโค studioโ within Reality Labs. Dye willโ focus onโ spatial interfaces, industrial โฃdesign, and the overall look and feel of forthcoming wearables. The move is โviewed as a win for โคMeta,despite internal rumblings at apple regarding Dye’s โdeparture.
further โcomplicating the landscape, Rocco Basilico, the executive who managed partnerships with Meta and internal development of Ray-Ban-branded smart glasses atโ EssilorLuxottica, is leaving the company โin January amidst restructuring within the โฃeyewear maker. Meta acquiredโ a 5% stake in โคEssilorLuxottica earlier this โคyear.
