Meta trims staff equity offering as AI investment climbs

Meta has reduced its annual distribution of stock options by about 5% for most employees, according to a report by the Financial Times, as chief executive Mark Zuckerberg accelerates spending on artificial intelligence infrastructure.

The Facebook parent declined to comment on the changes. The reported reduction follows a roughly 10% cut to stock awards last year that surprised some employees at the time. This marks the second consecutive year that equity-based compensation has been scaled back for the majority of staff.

Equity shifts as AI investment rises

Meta and other Big Tech companies are racing to expand data center capacity as competition intensifies in Silicon Valley’s AI development efforts. In January, the company said it expects capital expenditure in 2026 to range between $115billion and $135billion.

The company is constructing several gigawatt-scale data centers across the US, including a rural Louisiana project that Donald Trump said would cost $50billion. The infrastructure expansion forms a central pillar of Meta’s AI ambitions.

The shift in equity allocation comes as leadership channels billions of dollars into computing capacity and related projects, reshaping how resources are distributed between long-term capital investment and employee rewards.

Reality Labs restructuring

Last month, Meta laid off about 10% of employees within its Reality Labs division, which had approximately 15,000 workers. The company is redirecting resources from certain virtual reality products toward wearable technology initiatives.

Reality Labs, which houses Meta’s 'metaverse' strategy, has accumulated more than $70billion in losses since 2021. The workforce reduction reflects ongoing reprioritization within the unit as the company balances investment across emerging platforms.

In a further move linked to its AI strategy, Meta appointed Trump ally Dina Powell McCormick as President and Vice Chairman. The appointment is intended to strengthen partnerships with governments and investors supporting the company’s artificial intelligence projects.

Equity-based awards have traditionally played a central role in talent retention within technology firms. Adjustments to those awards, particularly over consecutive years, are impacting on engagement and reward strategies as investment priorities continue to change.

Meta’s reduction of stock options alongside significant investment shows that the race for AI dominance is impacting both financial strategy and workforce benefits packages.