Meta Platforms Inc. and Microsoft Corp. are preparing significant workforce reductions and buyout programs that could impact up to 23,000 employees, as both companies step up cost control efforts while increasing investment in artificial intelligence.
Meta Plans 10% Job Cuts
Meta has informed employees through an internal memo that it plans to reduce its workforce by about 10%, affecting roughly 8,000 employees starting May 20. In addition, the company will not fill around 6,000 currently open positions, further tightening headcount.
The move comes as Meta continues to scale up spending on AI infrastructure, including large capital investments and partnerships. The company has already carried out multiple rounds of layoffs in recent years across different divisions, including Reality Labs.
Chief People Officer Janelle Gale noted in the memo that the restructuring is aimed at improving efficiency and supporting ongoing investments, including artificial intelligence development. She also acknowledged internal uncertainty following earlier leaks about the layoffs.
Microsoft Offers Large-Scale Buyouts
Microsoft has separately begun offering voluntary buyouts to a portion of its US workforce. Around 7% of employees in the United States may be eligible, which translates to roughly 8,750 workers based on current staffing levels.
The buyout scheme applies to employees whose combined age and years of service total 70 or more, excluding certain senior and sales incentive roles. This is one of the largest voluntary exit programs the company has introduced.
Chief People Officer Amy Coleman said the program is part of efforts to simplify operations and maintain pace as the company expands its AI and cloud infrastructure globally. Microsoft has been aggressively investing in data centres and AI capabilities across multiple regions.
AI Investments Driving Cost Pressure
Both companies are heavily increasing spending on AI-related infrastructure, including data centres and cloud systems. Microsoft Corp. has recently announced new AI investments in countries such as Japan and Australia, while Meta Platforms Inc. continues to forecast record capital expenditure for the year.
Despite strong revenue performance, both firms are under pressure to balance rising costs with efficiency improvements. This has led to repeated restructuring efforts over the past few years.
Outlook
The workforce changes come just ahead of quarterly earnings announcements scheduled for April 29. Investors are expected to closely watch how both companies manage the trade-off between heavy AI spending and operational efficiency.
