Tech giants Meta Platforms and Microsoft are planning significant job cuts and voluntary buyouts to streamline operations amidst heavy investments in artificial intelligence (AI). Meta intends to reduce about 10% of its workforce, approximately 8,000 jobs, starting May 20. Additionally, the company will not fill around 6,000 open positions as part of its restructuring efforts.
Microsoft, on the other hand, has offered voluntary buyouts to a segment of its US workforce. Reports suggest that around 7% of eligible US employees could be impacted by this program, affecting approximately 8,750 workers based on current staffing levels. Both companies are increasing spending on AI infrastructure, such as data centers and related technologies.
The restructuring initiatives coincide with Microsoft’s global data center expansion, with recent AI-related investments announced in markets like Japan and Australia. Meta is also projecting record capital expenditure this year and has entered into significant multi-billion-dollar deals with AI partners in recent months. Both firms have previously undergone multiple rounds of job cuts over the past two years to align cost structures with their growing AI investments.
Meta’s Chief People Officer, Janelle Gale, mentioned in an internal memo that these actions aim to enhance efficiency and balance investments. Similarly, Microsoft’s Chief People Officer, Amy Coleman, emphasized the need to adapt to evolving priorities and maintain a high pace of work. Both companies are set to announce their quarterly earnings by the end of April.
In a related development, KPMG is reportedly reducing its US audit partner numbers by approximately 10% through voluntary early retirements as part of a long-standing strategy.
