Meta cuts 8,000 jobs

Meta plans to cut about 8,000 jobs starting May 20, opening the first wave of a broader 2026 restructuring as it pours more money into artificial intelligence. (usatoday.com) (forbes.com) The layoffs amount to roughly 10% of Meta’s workforce, based on reports that the company had about 75,000 to 79,000 employees before the cuts. Reuters reported additional reductions are planned later in 2026. (forbes.com) (msn.com) For Meta, this is its biggest restructuring since the 2023 “year of efficiency,” when Chief Executive Mark Zuckerberg cut about 21,000 jobs. The new round comes after smaller cuts this year in recruiting, sales and Reality Labs. (forbes.com 1) (forbes.com 2) The timing is the point: Meta is trimming staff while protecting spending on the computing power, chips and data centers needed to build and run AI products. Reports have tied the cuts to a larger internal shift toward AI-assisted work. (forbes.com 1) (forbes.com 2) Microsoft is making a parallel move, but through exits rather than layoffs. The company began offering its first voluntary buyouts to about 7% of its U.S. workforce, or roughly 8,750 employees, according to CNBC and Bloomberg. (cnbc.com) (bloomberg.com) Microsoft’s one-time program applies to eligible U.S. employees at the senior director level and below whose age and years of service add up to at least 70. CNBC said it is the first such buyout in the company’s 51-year history. (cnbc.com) The common thread is cost control during an AI spending surge. Microsoft has told investors it plans to spend heavily on AI infrastructure, while Meta is cutting headcount as it reorganizes around AI products and tools. (microsoft.com) (forbes.com) For workers, the message is concrete: even at two of the world’s richest tech companies, payroll is being reshaped to fund the next phase of the AI race. (cbsnews.com) (techcrunch.com)