Restructuring

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

2022 Restructuring

In 2022, we initiated several measures to pursue greater efficiency and to realign our business and strategic priorities. These measures included a facilities consolidation strategy to sublease, early terminate, or abandon several office buildings under operating leases, a layoff of approximately 11,000 employees across the Family of Apps (FoA) and Reality Labs (RL) segments, and a pivot towards a next generation data center design, including cancellation of multiple data center projects (the 2022 Restructuring). We completed the data center initiatives and employee layoff in 2023. As of June 30, 2024, we have substantially completed the facilities consolidation initiatives.

A summary of our 2022 Restructuring pre-tax charges, including subsequent adjustments, is as follows (in millions):


	Three Months Ended June 30, 2024		Three Months Ended June 30, 2023
	Facilities Consolidation		Facilities Consolidation		Severance and Other Personnel Costs		Data Center Assets (1)		Total
Cost of revenue	$	3	$	9	$	—	$	(51)	$	(42)
Research and development	27		159		(7)		—		152
Marketing and sales	6		43		1		—		44
General and administrative	5		36		(6)		—		30
Total	$	41	$	247	$	(12)	$	(51)	$	184

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(1)Relates to a change in estimate in our data center restructuring charges recorded during 2022.


	Six Months Ended June 30, 2024		Six Months Ended June 30, 2023
	Facilities Consolidation		Facilities Consolidation		Severance and Other Personnel Costs		Data Center Assets (1)		Total
Cost of revenue	$	23	$	67	$	—	$	(220)	$	(153)
Research and development	186		643		(11)		—		632
Marketing and sales	41		179		(1)		—		178
General and administrative	37		165		(18)		—		147
Total	$	287	$	1,054	$	(30)	$	(220)	$	804

____________________________________

(1)Relates to a change in estimate in our data center restructuring charges recorded during 2022.


	Plan to Date
	Facilities Consolidation		Severance and Other Personnel Costs		Data Center Assets		Total
Cost of revenue	$	354	$	—	$	1,116	$	1,470
Research and development	3,078		399		—		3,477
Marketing and sales	841		233		—		1,074
General and administrative	815		316		—		1,131
Total	$	5,088	$	948	$	1,116	$	7,152

The 2022 Restructuring charges recorded to date under our FoA segment were $6.06 billion, and RL segment were $1.09 billion.