Meta, Microsoft Restructure Workforce as AI Investments Accelerate

(MENAFN) Meta Platforms and Microsoft have announced job reductions and internal restructuring as major technology firms continue expanding spending on artificial intelligence, according to reports.

Meta is planning to reduce its workforce by roughly 10%, affecting about 8,000 employees, while also eliminating around 6,000 unfilled positions. The company has indicated that the layoffs are scheduled for May 20 and are part of a broader effort to increase operational efficiency while funding large-scale AI development, including work on language models and chatbot systems.

Internal communications cited by reports suggest that Meta is significantly increasing investment in AI infrastructure and external partnerships. The company’s leadership has also projected record levels of capital spending this year. Employees impacted by the restructuring are expected to receive severance packages along with transition support.

Separately, Microsoft has announced a voluntary buyout program targeting up to 7% of its workforce in the United States. The offer applies primarily to employees at senior director level and below who meet certain age and tenure requirements.

The company has described the measure as part of ongoing adjustments linked to the growing influence of AI on business operations, compensation structures, and internal evaluation systems. Microsoft has also been expanding investment in data center infrastructure to support its AI services, following similar strategies adopted across the tech sector.

Both companies’ actions reflect a wider industry shift, where heavy investment in AI technologies is being accompanied by workforce restructuring and cost optimization measures.

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