By Sandra Peter
Publication Date: 2026-04-24 08:33:00
Meta and Microsoft are the latest software companies to announce major cuts to their global workforce. Both companies are also investing heavily in artificial intelligence (AI).
The connection seems obvious. Janelle Gale, Meta’s chief people officer, said the job cuts — about 10% of the workforce, or nearly 8,000 workers — are intended to “balance the other investments we’re making.” Meta boss Mark Zuckerberg had previously spoken of “significant AI acceleration,” with spending of over $115 billion planned this year.
Microsoft is also relying heavily on AI. The company also just announced early retirement packages for about 7% of its U.S. workforce.
The two tech giants join Atlassian, Block, WiseTech Global and Oracle, all of which have made similar announcements this year, each recalling AI without directly blaming it.
What’s happening here? How we understand these layoffs depends on what we understand by AI and what impact it will have. Broadly speaking, there are three options…