Meta announced Thursday it will cut approximately 8,000 jobs, representing about 10% of its workforce, as part of a broader effort to redirect resources toward artificial intelligence development and infrastructure.
The company also plans to leave around 6,000 positions unfilled, signaling a shift in hiring priorities as it increases spending on AI-related initiatives.
The move follows earlier smaller rounds of layoffs this year and marks the company’s largest workforce reduction since 2023.
At the same time, Microsoft revealed plans to offer voluntary buyouts to roughly 8,750 U.S.-based employees, or about 7% of its domestic workforce, with offers expected to begin in early May.
Meta’s decision reflects a significant escalation in its AI investment strategy, with projected expenses for 2026 expected to reach between $162 billion and $169 billion, driven largely by infrastructure costs and compensation for specialized AI talent.
The company indicated that increased efficiency and the need to support new areas of growth were key reasons behind the layoffs.
Chief Executive Mark Zuckerberg has previously pointed to the growing impact of AI on productivity, suggesting that fewer employees are now needed to perform tasks once handled by larger teams.
The company is also intensifying its internal focus on AI development, including initiatives aimed at improving models through expanded data collection from employee systems.
This shift comes amid broader restructuring efforts that have already reduced Meta’s workforce by tens of thousands since 2022.
Microsoft’s buyout program highlights a parallel approach within the technology sector, offering an alternative to layoffs while still reducing workforce size.
The company has invested heavily in expanding its global network of data centers and advancing AI-powered tools such as its Copilot assistant.
Analysts view these developments as part of a wider industry transformation, where automation and AI integration are reshaping operational structures.
The emphasis on efficiency and cost reduction reflects mounting pressure on companies to balance high AI investment with sustainable financial performance.
Together, these moves underscore a growing trend among major technology firms to streamline operations while accelerating their push into artificial intelligence.