Both tech firms outlined cost-cutting plans in separate internal memos dated Apr 23<\/p>\n
Meta and Microsoft are taking significant steps to reduce their workforces as they streamline operations and manage the rising costs of artificial intelligence (AI) investments, according to recent media reports<\/a>. <\/p>\n In an internal memo dated Apr 23, Meta said it plans to cut about 10% of its workforce\u2014roughly 8,000 employees\u2014beginning May 20. The company also intends to leave around 6,000 open roles unfilled.<\/p>\n On the same day, Microsoft issued its own memo, announcing a large-scale voluntary buyout programme for its US employees. <\/p>\n Around 7% of its US workforce will be eligible, according to a source familiar with the matter. With about 125,000 employees in the US as of June 2025, this could affect approximately 8,750 workers. The company has not previously offered buyouts at this scale, said the source. <\/p>\n Workforce cuts as AI investments climb<\/p>\n The cost-cutting measures come as the tech firms ramp up spending on AI infrastructure. <\/p>\n Microsoft is accelerating the construction of data centres globally and recently unveiled new AI investments in Japan and Australia. <\/p>\n Meta has similarly forecast record capital expenditure for 2026 and struck several multi-billion-dollar AI partnerships in recent months. Both firms have already gone through multiple rounds of layoffs in recent years.<\/p>\n Meta\u2019s chief people officer, Janelle Gale, said in the memo that the layoffs are part of a broader push to improve efficiency and balance rising investment costs. She acknowledged the uncertainty among employees, noting that the announcement was made early after details of the plan had begun to leak.<\/p>\n Employees at Meta have spent much of the year bracing for job reductions, following earlier cuts across units, including Reality Labs. Gale said confirming the decision now, despite the unease it may cause, was necessary under the circumstances.<\/p>\n \u201cI know this is unwelcome news, and confirming this puts everyone in an uneasy state, but we feel this is the best path forward, given the circumstances,\u201d she wrote.\u00a0<\/p>\n Meanwhile, Microsoft\u2019s buyout offer applies to employees whose combined age and years of service equal at least 70, with some exclusions for senior staff and those on sales incentive plans. <\/p>\n \u201cI\u2019ve never seen the company move with this level of urgency and pace, and I see the intensity and agility you bring every day,\u201d chief people officer Amy Coleman wrote in the memo, which was reviewed by Bloomberg. \u201cTo sustain this pace, we have to stay focused on doing great work, trusting and empowering our managers and simplifying to support everyone.\u201d\u00a0<\/p>\n Read other articles we\u2019ve written on tech giants here<\/a>.<\/p>\n