Meta Layoffs in Canada: December 2025 Update + Severance Rights

Meta is preparing major cuts of up to 30% to its Reality Labs (metaverse) budget, first reported on December 4, 2025 by Bloomberg. While Meta hasn’t formally confirmed layoffs, cuts of this size mean job losses are expected as early as January 2026 (Reuters).

What Meta is Cutting

Meta’s 2026 planning meetings resulted in a significant pullback from metaverse spending:

• Up to 30% budget reduction in Reality Labs
• Cuts expected to affect Quest VR teams, Horizon Worlds, and third-party studios (Business Insider)
• Layoffs likely, tied directly to the size of the reductions
• Reality Labs has reported over $60B in losses since 2020

Why Meta is Shifting Away From the Metaverse

Meta is reallocating investment toward AI glasses, wearables, and broader AI infrastructure, moving resources from VR and virtual-world development.

Pressure is coming from:

• Intensifying competition in AI
• Slower-than-expected consumer adoption of the metaverse

Who May Be Affected

Meta has not released headcount numbers, but teams most likely impacted include:

• Horizon Worlds developers
• Quest hardware and mixed-reality teams
• VR content studios funded by Meta

Employees have been told reductions may include both operating expenses and headcount, leading to internal uncertainty.

Severance Packages for Meta Employees

In Canada, severance for non-unionized Meta workers is based on common law, which looks at factors such as:

• Your length of service
• Your age
• Your position, seniority, and scope of responsibility
• The availability of comparable jobs in the market

Depending on these factors, Meta employees in Canada can receive up to 24 months of severance pay under common law.

Meta may present a “standard” package that:

• Offers only ESA minimums (far less than common law entitlements)
• Ignores RSUs, stock options, ESPP and long-term incentives
• Under-values commissions or variable compensation
• Gives a short deadline (e.g., 5–10 days) to sign
• Provides a lump sum or salary continuation with limited explanation

This is why you should never assume Meta’ first offer is fair. Having a severance package reviewed is often the difference between a few months of pay and potentially up to 24 months of total compensation.

Potential Issues With Meta Layoff Notices

Common problems we see when employees in Canada are laid off include:

• Incorrect severance calculations that only consider ESA minimums
• Insufficient notice relative to your years of service and seniority
• Temporary layoff language used without a clear contractual right to do so
• Unclear handling of RSUs, stock options, ESPP and bonuses
• Short deadlines designed to pressure quick acceptance
• Incomplete breakdowns of how an employer arrived at the severance figure

Any one of these issues can be a sign that your offer is below your legal entitlement under Canadian law.

Common Red Flags in Severance Offers

Be especially cautious if your severance package:

• Includes only a few weeks or a handful of months of pay after many years of service
• Does not continue benefits for a reasonable period
• Leaves RSUs, stock options, ESPP or long-term incentives out of the calculation
• Does not clearly explain how bonuses and commissions are treated
• Describes your termination as “restructuring” or “realignment” but still ends your employment permanently
• Comes with a 24–72-hour deadline or other intense pressure to sign
• Asks you to sign away rights (including future claims) in exchange for basic amounts you are already owed

Wrongful Dismissal and Meta Layoffs

A wrongful dismissal happens when an employer like Meta fails to provide the full severance pay required under common law after terminating a non-unionized employee without cause.

You may have a wrongful dismissal claim if:

• Your severance package is far lower than what similar employees receive in court decisions
• Your employment contract’s termination clause is unenforceable under current Canadian case law
• You are pressured to sign quickly with threats that the offer will “disappear”
• You are let go during maternity, parental, disability, or medical leave
• The company labels the situation as a “temporary layoff” with no realistic recall and no valid contractual basis
• Your employer refuses to recognize RSUs, bonuses, commissions or benefits in the severance calculation

What to Do After Meta Lays You Off

If Meta has just given you notice of termination or a severance offer:

1. Do not sign anything right away. Signing waives your right to seek more severance later.
2. Collect all relevant documents:
   • Offer letter and employment contracts
   • Commission plans, bonus policies and equity grant agreements (RSUs, options, ESPP)
   • Recent pay stubs and T4s
   • Any emails or memos about your role, performance, or restructuring
3. Use the Severance Pay Calculator to get a quick estimate of what you may be owed under Canadian law.
4. Take notes about your duties and responsibilities, especially if you held a specialized or senior role (e.g., enterprise account manager, senior solutions engineer, sales leader).
5. Speak with an employment lawyer who works for employees (not employers) to assess whether Meta offer reflects your full common law entitlement.

You generally have up to two years from the date of termination to pursue a legal claim — the deadline in your severance letter is often an internal company timeline, not a legal one.

How Samfiru Tumarkin LLP Can Help With Meta Layoffs

If Meta has laid you off — or if you are concerned that upcoming restructuring might affect your role — talk to an employment lawyer before you sign anything.

Samfiru Tumarkin LLP has helped over 50,000 Canadians secure the compensation they’re owed, and has earned more than 3,000 five-star reviews across the country.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.