Microsoft and Meta cut thousands of employees due to AI
Thousands of employees at tech giants will lose their jobs (photo: Getty Images)
Companies Meta and Microsoft are planning large-scale staff reductions as part of a cost-optimization strategy. The goal is to redirect resources toward the development of artificial intelligence (AI), according to Sky News.
Record layoffs at Meta
Meta, which owns Instagram and WhatsApp, has officially announced the dismissal of around 8,000 employees. This represents approximately 10% of its total workforce. The main reason is the need to improve efficiency amid rapidly increasing investments in new technologies.
In addition to direct layoffs, the company confirmed that around 6,000 open positions will remain unfilled. According to Meta’s forecasts, development costs in 2026 will reach $160 billion, which is $40 billion more than last year.
A significant portion of these funds will go toward hiring scarce AI specialists, building and maintaining powerful data centers, and developing new algorithmic models.
Microsoft’s strategy: voluntary layoffs
Microsoft has taken a different approach and is launching a voluntary departure program. According to preliminary data, it will affect around 8,750 people — approximately 7% of the company’s total workforce.
The program is set to begin in early May. Microsoft’s Chief People Officer Amy Coleman stated that the company aims to allow employees to take the next step in their careers on their own terms, offering “generous support.”
AI as both threat and investment
Layoffs in the IT sector have become a steady trend in recent years. Tech giants are trying to stay ahead in the race for dominance in artificial intelligence.
At the same time, AI itself is becoming a driver of job cuts, as it can automate tasks previously performed by humans.
The situation is further complicated by high infrastructure costs. In addition to hardware and energy expenses, companies must pay substantial salaries to highly specialized experts. This forces them to cut costs in other departments.
Meta expects its AI investment cycle to last several years before it begins generating real profit.
