Meta and Microsoft are planning job cuts and buyouts that could impact up to 23,000 roles globally, as both companies look to streamline operations and offset rising investments in artificial intelligence.
Meta has informed employees through an internal memo that it plans to cut 10% of its workforce, or around 8,000 jobs, starting May 20. The company also said it will not fill approximately 6,000 open roles as part of its restructuring efforts. According to the report, these measures are aimed at improving efficiency and reallocating resources amid increased spending on AI infrastructure and capabilities.
Microsoft, on the other hand, has offered voluntary buyouts to thousands of employees in the United States. Around 7% of its US workforce, or roughly 8,750 employees, will be eligible for the programme, marking one of the largest buyout initiatives undertaken by the company. The move reflects a shift towards cost optimisation and organisational simplification as Microsoft continues to scale its AI investments.
As per reports, the combined impact of these measures across both companies could affect as many as 23,000 roles, underscoring a broader trend within the technology sector where companies are restructuring their workforce to align with AI driven priorities.
Both Meta and Microsoft have undertaken multiple rounds of layoffs in recent years, and the latest actions signal a continued focus on efficiency, automation, and long term cost management. The restructuring comes at a time when large technology companies are increasing capital expenditure on artificial intelligence, even as they look to rationalise workforce structures and improve operational agility.
Amy Coleman, Microsoft’s Chief People Officer, emphasized the need for agility in a rapidly evolving environment. “I’ve never seen the company move with this level of urgency and pace, and I see the intensity and agility you bring every day,” she noted. “To sustain this pace, we have to stay focused on doing great work, trusting and empowering our managers and simplifying to support everyone.”
Janelle Gale, chief people officer “We’re doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making. The company was announcing the layoffs early since details of the plan had already leaked. I know this is unwelcome news and confirming this puts everyone in an uneasy state, but we feel this is the best path forward, given the circumstances.”
