By Sanya Mansoor
Publication Date: 2026-04-23 21:23:00
Meta and Microsoft are cutting their workforces by thousands as they invest heavily in AI and executives claim the technology meets their companies’ productivity needs.
Meta told employees Thursday that the company would cut about 10% of its workforce (nearly 8,000 employees) on May 20 to increase efficiency, part of a layoff plan drawn up months ago. The company is also closing approximately 6,000 open positions. That same day, Microsoft announced to employees for the first time that it would offer voluntary retirement to about 7% of its approximately 125,000 American workforce.
In an internal memo to Meta employees, Chief People Officer Janelle Gale didn’t specifically mention AI, but said the cuts would allow the company to “offset the other investments we’re making.” In Meta’s Q4 2025 earnings presentation, CEO Mark Zuckerberg spoke of “significant AI acceleration,” which included plans to spend between $115 billion and $135 billion on AI – nearly twice as much as…
