Meta is laying off about 8,000 employees, around 10 percent of its workforce, as it increases spending on artificial intelligence infrastructure and high-paid AI talent.
The company said the job cuts are intended to improve efficiency and redirect resources toward new investments in key areas of its business. Reports also indicate that Meta plans to leave around 6,000 roles unfilled.
Microsoft, meanwhile, is offering voluntary buyouts to about 8,750 employees in the United States, representing roughly 7 percent of its US workforce. According to reports citing people familiar with the plan, the buyout offers are expected to be made in early May.
While Microsoft’s approach differs from the sudden layoffs seen at Meta and other peers, analysts say both moves reflect a broader industry shift as tech companies significantly increase investment in artificial intelligence.
Meta has already told investors that its 2026 expenses are projected to rise sharply to between $162 billion and $169 billion, driven mainly by infrastructure and compensation costs, particularly for AI specialists. This week, the company also announced it has begun work on a $1 billion AI-optimised data centre in Tulsa, Oklahoma, its 28th in the United States.
Analysts said Meta’s layoffs align with a strategy of using AI tools to automate tasks previously handled by large teams, allowing the company to streamline operations while maintaining output.
Microsoft has also invested billions in expanding its global data centre network to support cloud services, AI systems, and products such as Copilot. CNBC reported that the voluntary retirement plan was detailed in a memo from chief people officer Amy Coleman.
Meta shares fell 2.3 percent on Thursday, while Microsoft shares closed down 3.97 percent.
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