Meta and Microsoft cut jobs to fund AI
- Meta told employees on April 23 it will cut about 8,000 jobs, or 10% of its workforce, starting May 20, and scrap plans to fill another 6,000 open roles. - Microsoft on April 23 launched its first broad voluntary retirement program, making about 7% of its 125,000 U.S. employees eligible for buyouts, or roughly 8,750 workers. - Both moves come as Big Tech redirects cash toward artificial intelligence chips, data centers and specialist hires. (apnews.com)
Meta and Microsoft are cutting jobs at the same time they are spending more heavily on artificial intelligence. (apnews.com) Meta said Thursday, April 23, that it will lay off about 8,000 employees, or 10% of its workforce, beginning May 20. The company also canceled plans to fill roughly 6,000 open positions. (cnbc.com) (nbcnews.com) Microsoft said the same day that it will offer one-time voluntary retirement buyouts to eligible U.S. employees. CNBC reported the program could cover about 7% of Microsoft's 125,000 U.S. workers, or roughly 8,750 people. (cnbc.com) (bloomberg.com) The cuts are landing as the biggest tech companies pour billions into the machinery behind artificial intelligence: data centers, advanced chips and the engineers who build and tune models. Yahoo Finance reported Amazon, Google, Meta and Microsoft are set to spend about $650 billion on capital expenditures in 2026. (finance.yahoo.com) Meta has tied the layoffs to its rising artificial intelligence bill. CNBC reported the company said in an internal memo that it needs to offset higher spending on infrastructure and highly paid artificial intelligence hires. (cnbc.com) Microsoft's move is structured differently, but the backdrop is similar. CNBC said the company has never before offered a voluntary retirement program on this scale in its 51-year history, even as it expands spending on artificial intelligence infrastructure. (cnbc.com) (geekwire.com) The two announcements also show how companies are protecting some jobs while raising the bar for others. AP reported Meta is still hiring for artificial intelligence, machine learning and infrastructure roles even as it cuts elsewhere. (apnews.com) This is the latest turn in a longer reset across tech after pandemic-era hiring surges. AP said Meta and Microsoft had already reduced headcount in earlier rounds, but this week's moves are more explicitly tied to the cost of the artificial intelligence buildout. (apnews.com) For workers, the message from both companies is concrete: fewer general openings, more pressure to fit into artificial intelligence and infrastructure priorities. The next hard date is May 20, when Meta says its layoffs begin. (cnbc.com)
