Meta, owner of Facebook, laid off around 700 employees on Wednesday.
The cuts will affect several different organisations within the company, including Facebook, global operations, recruiting, sales and Reality Labs, responsible for making virtual reality and metaverse products.
Some impacted employees are being offered new roles within the company.
The latest major round of lay-offs indicate Meta's direction, as they shift focus to artificial intelligence.
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The tech giant is pouring billions of dollars into development funding, as it races to catch up with industry leaders such as OpenAI and Google.
Meta had been planning to cut up to 15 per cent of jobs in Reality Labs last year, while boss Mark Zuckerburg piled billions into a new team of AI specialists.
A Meta spokesman said: "Teams across Meta regularly restructure or implement changes to ensure they’re in the best position to achieve their goals.
"Where possible, we are finding other opportunities for employees whose positions may be impacted."
Meta, owner of Facebook, laid off around 700 employees on Wednesday, it has been reported
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A person with knowledge of the company has said the decision was announced while awaiting the verdict of the high-profile US court case, in which they were found to be liable for intentionally building addictive social media platforms that harmed the mental health of a 20-year-old, along with Google.
Meta, which owns Instagram and Whatsapp alongside Facebook, have been ordered to pay $2.1million (£1.5million) in damages, while Google must stump up $900,000 (£670,000).
Lawyers for Meta had argued that while the woman, known as Kaley, had suffered throughout her life, her use of Instagram did not cause or significantly contribute to her mental struggles.
Meta said: "We respectfully disagree with the verdict and are evaluating our legal options."
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Meta lost a landmark case this afternoon in which they were found to be liable for intentionally building addictive social media platforms
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Meta were found to be 70 per cent responsible for the woman's harm, while Google were 30 per cent.
Punitive damages are still to be determined by the court, which could reach up to $30million.
A spokesperson for Google said: "We disagree with the verdict and plan to appeal. This case misunderstands YouTube, which is a responsibly built streaming platform, not a social media site."
Merely 24 hours ago, Meta announced a new stock program for its top executives that, if achieved, could increase compensation by as much as $921 million each over the next five years.
The tech giant have said the move was to retain top talent in the era of AI.
Chief Technology Officer Andrew Bosworth; Chief Product Officer Chris Cox; Chief Financial Officer Susan Li; Chief Operating Officer Javier Olivan; President and Vice Chairman Dina Powell McCormick; and Chief Legal Officer CJ Mahoney all stand in line to receive huge bonuses.
A Meta spokesman said: "This is a big bet. These pay packages will not be realised unless Meta achieves massive future success, benefiting all of our shareholders."