Meta, Microsoft Cut Thousands Of Jobs As AI Investment Surges

Job cuts come in as the tech giants are ramping up AI spending.

tech job cuts
The moves reflect a broader industry trend of restructuring workforces to prioritize AI capabilities. Photo: File photo
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Summary

Summary of this article

  • Meta is cutting 10% of its workforce (8,000 jobs) and leaving 6,000 roles unfilled, starting May 20.

  • Microsoft is offering early retirement buyouts to about 8,700 employees, or 7% of its staff.

  • Both tech giants are making massive AI investments, with Meta focused on developing "personal superintelligence" for users.

Meta and Microsoft announced major workforce reductions on Thursday, trimming thousands of roles while pouring billions into artificial intelligence development.

Facebook-parent Meta said it would eliminate approximately 8,000 positions, or 10% of its workforce, with the first round of layoffs scheduled for May 20. An additional 6,000 open roles will remain unfilled, according to an internal memo seen by reporters. The cuts affect employees across Facebook, Instagram, and WhatsApp.

The same day, U.S. media reported that Microsoft is preparing voluntary early retirement buyouts for roughly 8,700 workers, about 7% of its global staff.

Both tech giants are ramping up AI spending. Meta has committed to building what CEO Mark Zuckerberg calls "personal superintelligence," AI agents tailored to individual users.

"Personal superintelligence that knows us deeply, understands our goals, and can help us achieve them will be by far the most useful," Zuckerberg wrote in July 2025. He added that smart glasses and other wearable devices that "see what we see, hear what we hear" will become primary computing tools.

Neither company has disclosed total severance costs. The moves reflect a broader industry trend of restructuring workforces to prioritize AI capabilities.

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