AI boom triggers tech shakeup: Meta cuts thousands, Microsoft offers buyouts
Meta is laying off 8,000 workers, or 10% of its workforce, to ramp up spending on artificial intelligence infrastructure and highly paid AI-expert hires. Microsoft is offering voluntary buyouts to 8,750 U.S. employees, or 7% of its U.S. workforce, amid a similar industry upheaval driven by AI costs.
Meta is cutting 8,000 jobs, or 10% of its workforce, to invest in artificial intelligence infrastructure and hire AI experts. The company will also leave 6,000 jobs unfilled. Microsoft is offering voluntary buyouts to 8,750 U.S. employees, or 7% of its workforce. The move is tied to the industry's shift towards AI, with Meta warning investors that its 2026 expenses will grow to $162-169 billion due to infrastructure costs and employee compensation. Microsoft has spent billions on data centers powering cloud computing services and AI systems. Meta's cuts are part of a strategy to streamline operations and reduce costs while maintaining productivity.
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