Key Takeaways
- Meta, Citigroup, and BlackRock have announced significant layoffs in January 2026, continuing a trend from the previous year.
- Meta plans to cut 10% of its Reality Labs workforce to fund AI investments.
- Citigroup is laying off around 1,000 employees this week as part of a larger 20,000-job reduction plan.
- BlackRock is cutting about 250 jobs (1% of its workforce) to reallocate resources.
The first month of 2026 has begun with a wave of job cuts, as major corporations Meta, Citigroup, and BlackRock announce layoffs affecting thousands of employees. This signals a continuation of the cost-cutting and restructuring trends that defined 2025.
Meta Cuts Jobs to Fund AI Push
Meta is planning to lay off 10% of its workforce in the Reality Labs division, according to a Bloomberg report. The cuts, expected later this week, are part of a restructuring to shift investment away from some virtual reality products and into AI-powered wearables.
Last year, CEO Mark Zuckerberg had already directed executives to find budget reductions within Reality Labs. This move highlights the intense corporate focus on .
Citigroup Continues Multi-Year Restructuring
Banking giant Citigroup is set to lay off approximately 1,000 employees this week. CEO Jane Fraser is driving the cuts to control costs and improve returns. The bank had about 227,000 employees at the end of September.
This latest round is part of a broader plan announced two years ago to eliminate 20,000 jobs by the end of 2026.
“We will continue to reduce our headcount in 2026,” Citigroup said in a statement.
“These changes reflect adjustments we’re making to ensure our staffing levels, locations and expertise align with current business needs; efficiencies we have gained through technology; and progress against our transformation work,” it added.
Since taking over in 2021, Fraser has overseen a major revamp, including exiting much of its international retail business.
BlackRock Trims Workforce for Strategic Shift
BlackRock, the world’s largest asset manager, announced on Monday it would cut hundreds of employees. The layoffs affect about 1% of its global workforce, translating to roughly 250 jobs across various divisions.
“Improving BlackRock is a constant priority. Each year, we make decisions to ensure that our resources are aligned with our objectives and that we are well positioned to serve clients today and in the future,” a company spokesperson told Bloomberg.
The decision aligns with CEO Larry Fink’s push to grow the firm’s alternative investments business, indicating a strategic reallocation of resources .
