Meta is cutting around 8,000 jobs—about 10% of its workforce—as it increases spending on AI infrastructure and high-cost talent.
The company said the layoffs are aimed at improving efficiency and freeing up resources for new investments, with roughly 6,000 roles expected to remain unfilled.
At the same time, Microsoft is taking a different approach, offering voluntary buyouts to about 8,750 U.S. employees, or 7% of its domestic workforce, starting in early May.
Both moves reflect a broader shift across the tech industry, where companies are redirecting massive budgets toward artificial intelligence. Meta has already warned that its 2026 expenses could rise to between $162 billion and $169 billion, driven by infrastructure and top-tier AI hiring.
Analysts see Meta’s cuts as part of a transition toward automation, using AI to replace tasks once handled by large teams, leading to leaner operations.
Meanwhile, Microsoft continues to invest heavily in data centers, cloud services, and AI tools like Copilot, with its buyout program offering employees a voluntary exit with company support.