Anticipated workforce changes at two major U.S. tech firms, Meta and Microsoft, may impact around 16,000 employees as they address rising costs from investments in artificial intelligence (AI). Meta plans to cut approximately 10 percent of its workforce, translating to around 8,000 jobs, while also closing around 6,000 unfilled positions. The company has communicated these reductions internally, with the process set to begin on May 20.
Significant capital is being allocated to new computing systems aimed at enhancing AI capabilities, which has led to increased short-term expenses. Meta’s focus on advanced infrastructure, which requires substantial resources such as electricity and specialized maintenance, is part of a competitive strategy to develop sophisticated AI tools for text generation and complex problem-solving.
In contrast, Microsoft is not pursuing direct layoffs but is instead offering voluntary exit packages to eligible long-term employees. This initiative is projected to affect around 7 percent of its U.S. workforce, or over 8,000 workers, based on a combination of age and years of service totaling 70 or more. Both companies are navigating the financial pressures of heavy investments in AI while managing their workforce effectively.