Meta Platforms is executing a profound strategic realignment, marked by significant workforce reductions, a shift in executive leadership, and massive investments in energy infrastructure to power its future. The company’s focus is decisively turning away from its costly metaverse ambitions and toward the competitive arena of artificial intelligence.
A New President with Capital Connections
On January 12, 2026, Meta appointed Dina Powell McCormick as its President and Vice Chair. This move preceded the announcement of major layoffs by just one day. McCormick, a former deputy national security advisor in the Trump administration and a long-time Goldman Sachs executive, had resigned from Meta’s board of directors in December after only an eight-month tenure.
Her mandate is to oversee the expansion of data centers, forge strategic capital partnerships, and enhance the company’s investment capacity. A notable detail in her profile is likely to aid these efforts: her husband, David McCormick, is a Republican Senator from Pennsylvania and chairs the Energy Policy Subcommittee.
Workforce Reductions Signal a Changed Reality
The scale of the shift became clear on January 13, 2026, when Meta confirmed deep cuts within its Reality Labs division. Approximately 10% of the unit’s 15,000 employees—over 1,000 staff—are being laid off. The virtual reality development segment is being hit particularly hard, with the complete closure of three studios: Armature, Twisted Pixel, and Sanzaru. Furthermore, the fitness app Supernatural, acquired for $400 million in 2023, is now operating in maintenance mode only.
The financial rationale for this retrenchment is stark. Since late 2020, Reality Labs has accumulated losses exceeding $70 billion. The division’s performance in Q3 2025 alone illustrated the drain, reporting a $4.4 billion operating loss against revenue of just $470 million. CEO Mark Zuckerberg is consequently reallocating resources toward wearables and, most significantly, artificial intelligence.
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Securing Atomic Power for an AI Future
To fuel its AI ambitions, Meta is locking down a long-term, clean energy supply. On January 9, 2026, the company secured access to up to 6.6 gigawatts of nuclear power through 20-year agreements with Vistra. The contracts cover three nuclear plants in Ohio and Pennsylvania. Combined with a previous deal with Constellation Energy, this move positions Meta to become one of the largest corporate purchasers of nuclear power in U.S. history.
Looking further ahead, Meta plans to collaborate with TerraPower on deploying up to eight sodium-cooled reactors by 2032. Separately, Oklo is slated to build a new facility in Pike County, Ohio, with a potential capacity of 1.2 gigawatts; the first of its Aurora reactors could come online as early as 2030.
Wall Street Maintains a Bullish Stance
Analysts have largely responded positively to Meta’s strategic overhaul. The consensus among 40 tracked analysts remains a “Buy” rating, with an average price target hovering around $832. In mid-January, Meta’s stock was trading near $620 per share.
Specific analyst actions include:
* Mizuho’s Lloyd Walmsley reaffirming a Buy rating with a $815 target on January 18.
* TD Cowen raising its price target to $820 on January 13.
* Wells Fargo adjusting its target slightly downward from $802 to $795 while maintaining an Overweight rating.
All eyes are now on Meta’s upcoming earnings report for Q4 2025, scheduled for January 28, 2026. Expectations are for revenue between $56 and $59 billion and earnings per share of approximately $8.25. The company’s capital expenditures for 2025 are projected to land between $70 and $72 billion, with management already signaling “significantly higher” AI investments for 2026.
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