Meta, Microsoft to Reduce Workforce as AI Investments Rise

(MENAFN) Meta Platforms and Microsoft unveiled sweeping workforce reductions Thursday, as the tech industry's relentless pivot toward artificial intelligence continues to reshape corporate headcounts and operational priorities.

Meta is set to eliminate approximately 10% of its global workforce — around 8,000 employees — while simultaneously scrapping roughly 6,000 unfilled positions, media reported.

An internal memo to staff confirmed the layoffs are scheduled to take effect on May 20, as the social media giant seeks to streamline operations and free up capital to fund its expanding artificial intelligence ambitions, including large language models and next-generation chatbots.

Meta CEO Mark Zuckerberg has aggressively ramped up spending on AI infrastructure and strategic partnerships in recent months, with the company projecting record capital expenditures for the current fiscal year. The company said affected workers will receive severance packages alongside dedicated support services.

In a separate but parallel move, Microsoft announced it would offer voluntary buyouts to up to 7% of its US workforce, according to media.

Eligibility for the program is limited to employees at the senior director level and below who meet specific thresholds tied to age and years of service.

Microsoft framed the initiative as a strategic realignment driven by the transformative demands of AI adoption, coupled with a broader overhaul of its internal compensation structures and performance review systems. The Windows maker has been steadily scaling up investment in data centers to underpin its growing suite of AI-powered services — a trend mirrored across the wider technology sector.

Together, the announcements underscore a defining tension gripping Silicon Valley: as companies pour billions into the AI arms race, human workforces are bearing the cost of that transformation.

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