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Meta, Microsoft Announce Job Cuts as AI Investments Reshape Tech Sector
(MENAFN) Meta Platforms and Microsoft have both announced workforce reductions and restructuring efforts as major technology companies continue increasing spending on artificial intelligence, according to reports.
Meta is planning to reduce its workforce by about 10%, which amounts to roughly 8,000 employees, while also eliminating approximately 6,000 currently open roles. The company reportedly informed staff that layoffs are scheduled to begin on May 20 as part of a broader effort to streamline operations and redirect resources toward AI development, including large language models and chatbot technologies.
The company has been significantly expanding investment in AI infrastructure and strategic partnerships, with expectations of record-level capital spending this year. Affected employees are expected to receive severance packages and access to support services as part of the transition process.
In a separate development, Microsoft announced it will offer voluntary buyout options to as much as 7% of its US workforce, according to industry reports. The program is said to target employees at senior director level and below who meet specific age and tenure requirements.
Microsoft described the move as part of broader organizational adjustments linked to the growing influence of AI technologies, including changes to internal compensation structures and performance review systems. The company has also been increasing investment in data center infrastructure to support expanding AI services.
Together, the announcements reflect a wider trend across the technology sector, where companies are simultaneously expanding AI capabilities while restructuring traditional workforce roles to align with new operational priorities.
Meta is planning to reduce its workforce by about 10%, which amounts to roughly 8,000 employees, while also eliminating approximately 6,000 currently open roles. The company reportedly informed staff that layoffs are scheduled to begin on May 20 as part of a broader effort to streamline operations and redirect resources toward AI development, including large language models and chatbot technologies.
The company has been significantly expanding investment in AI infrastructure and strategic partnerships, with expectations of record-level capital spending this year. Affected employees are expected to receive severance packages and access to support services as part of the transition process.
In a separate development, Microsoft announced it will offer voluntary buyout options to as much as 7% of its US workforce, according to industry reports. The program is said to target employees at senior director level and below who meet specific age and tenure requirements.
Microsoft described the move as part of broader organizational adjustments linked to the growing influence of AI technologies, including changes to internal compensation structures and performance review systems. The company has also been increasing investment in data center infrastructure to support expanding AI services.
Together, the announcements reflect a wider trend across the technology sector, where companies are simultaneously expanding AI capabilities while restructuring traditional workforce roles to align with new operational priorities.
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