Big Tech’s AI Cuts Wave
- Meta said Thursday it will cut about 8,000 jobs, roughly 10% of its workforce, while Microsoft told U.S. employees it will offer voluntary buyouts to thousands in early May. - Bloomberg reported Meta will also leave about 6,000 roles unfilled, and CNBC said Microsoft’s program could reach about 8,750 U.S. employees, or roughly 7% of its domestic staff. - The cuts land as Big Tech shifts cash toward data centers, chips and elite AI hires instead of broader staffing. (finance.yahoo.com)
Meta and Microsoft moved the same week to shrink headcount as both companies pour more money into artificial intelligence. (apnews.com) (finance.yahoo.com) Meta said Thursday, April 23, that it will cut about 8,000 workers, or about 10% of its workforce. Microsoft, the same day, told employees it will offer voluntary buyouts to thousands of U.S. workers in early May. (apnews.com) (abcnews.com) Meta’s cuts are tied to “efficiency” and new investment priorities, according to reporting on an internal memo. Bloomberg also reported Meta plans to leave about 6,000 jobs unfilled. (apnews.com) (finance.yahoo.com) Microsoft’s program is unusual because it is voluntary, not a straight layoff. CNBC, cited by multiple outlets, reported the offers could reach about 8,750 U.S. employees, or roughly 7% of Microsoft’s domestic workforce. (finance.yahoo.com) (abcnews.com) The common thread is cost. Training AI models and running AI services require expensive data centers, specialized chips and power, and the biggest tech companies are redirecting spending toward that buildout. (finance.yahoo.com) (thenextweb.com) That spending is not small. Yahoo Finance reported Amazon, Google, Meta and Microsoft together are expected to spend about $650 billion on capital expenditures in 2026, much of it tied to AI infrastructure. (finance.yahoo.com) The workforce pattern is uneven. Meta is cutting broad roles while still spending on AI infrastructure and highly paid AI specialists, and Microsoft is trimming through buyouts while continuing its own AI expansion. (apnews.com) (thenextweb.com) These moves also follow earlier tech layoffs after pandemic-era hiring swelled payrolls. The difference now is that the savings are being redirected into AI systems rather than simply held back. (finance.yahoo.com) (apnews.com) For workers, the message from this week’s announcements is concrete: fewer conventional corporate roles, more spending on chips, servers and a smaller pool of top AI talent. (thenextweb.com) (finance.yahoo.com)
