Meta, Microsoft have joined tech layoff tsunami – but is AI really to blame?
Meta and Microsoft have announced significant job cuts, with Meta cutting about 10% of its staff and Microsoft offering early retirement packages to 7% of its US workforce, both citing investments in artificial intelligence (AI). The layoffs have sparked debate about the impact of AI on the job market, with some viewing it as a sign of AI-driven automation and others seeing it as a cover for financial restructuring.
Meta and Microsoft have announced significant job cuts, with Meta reducing its workforce by about 10% or almost 8,000 workers. Meta's chief people officer, Janelle Gale, said the cuts would "offset the other investments we're making", with Meta boss Mark Zuckerberg previously announcing a "major AI acceleration" with spending in excess of $115bn planned this year. Microsoft is also investing heavily in AI and has offered early retirement packages to about 7% of its US workforce. The layoffs have sparked debate about the impact of AI on the job market. Some view the job cuts as an early sign of AI-driven automation, while others see it as a cover for financial restructuring, with OpenAI CEO Sam Altman calling this dynamic "AI washing". The job cuts follow similar announcements from other tech companies, including Atlassian, Block, WiseTech Global, and Oracle.
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