MENLO PARK — As Meta Platforms reports billions in revenue amid plans to cut thousands of positions worldwide, the tech giant announced that it will pause its development of a new Menlo Park mixed-use neighborhood that was planned near the company’s headquarters.

The now-paused project, Willow Village, was slated to consist of homes, retail spaces, a grocery store, and modern offices.

“The decision to place Willow Village on hold was difficult,” said Adam Alberti, spokesperson for Peninsula Innovation Partners LLC, the Meta Platforms affiliate that owns the development site and is the applicant for the project. “While the plan reflects a genuine vision for community-based development, the current real estate market and a shift in space requirements make advancing a project of this type and scale unworkable at this time.”

Menlo Park-based Meta has been seeking ways to trim the size of its workforce as it reduces its office space footprint in the Bay Area.

The company is planning to eliminate 10% of its worldwide workforce, which could result in layoffs for 7,500 to 8,000 workers. Layoffs could begin this month and might continue during the second half of 2026.

Over the first four months of 2026, Meta revealed decisions to cut 519 jobs in the Bay Area, according to this news organization’s review of multiple WARN letters Meta sent to the state’s labor agency.

On April 29, Meta reported first-quarter profits of $10.44 billion on revenue of $56.31 billion. The profits were up 61% from the first quarter of 2025, while revenue was up 33%.

Meta plans to increase capital spending by $10 billion to a new estimated range of $125 billion to $145 billion for all of 2026.

The Willow Village project, when plans initially emerged, was touted as a way to create a lively new neighborhood in Menlo Park that would benefit both the community and company.

Plans were to replace a half-century-old industrial and research park with the new neighborhood.

Willow Village had been expected to produce 1.25 million square feet of office space, 1,730 housing units, along with the retail spaces. About 300 affordable homes were also envisioned.

Meta had projected that about 6,950 of its employees would have worked within its footprint.

The decision to put Willow Village on hold shouldn’t reflect poorly on the quality of the proposal or diminish the strength of the company’s collaboration with the city, Meta stated.

Work on the project involved years of engagement with local stakeholders, community organizations, and city partners, the tech company said.

Meta said it will continue to coordinate with Menlo Park city officials regarding the next steps related to existing project applications and regulatory processes.

“We remain deeply committed to the community and appreciate the trust and partnership throughout this process,” Alberti said.