Meta, Microsoft cut jobs amid AI spending surge

Two of the largest technology companies in the United States, Meta Platforms and Microsoft, announced workforce reductions and restructuring measures as they adjust operations following increased investments in AI (artificial intelligence), according to the Turkish news agency Anadolu and Xinhua.

Meta is expected to lay off 10% of its workforce, or approximately 8,000 employees, and will also eliminate around 6,000 open positions.

In a memo to employees, the company said the layoffs will take place on May 20, aiming to improve efficiency and offset investments in AI, including large language models (LLMs).

Meta CEO Mark Zuckerberg is accelerating partnerships and spending on AI infrastructure, with the company announcing record capital expenditures this year, between $115 billion and $135 billion.

Meta stated that affected employees will receive severance pay and support services. As of December 31, 2025, Meta had 78,865 employees worldwide, CE Report quotes AGERPRES.

Separately, Microsoft announced it will implement a voluntary departure program targeting up to 7% of its U.S. workforce.

The program is aimed at employees and management staff. The decision is part of efforts to adapt to changes driven by AI and to adjust the internal compensation system, the company said.

Microsoft has increased investments in data centers to support AI services, as have other major technology companies.

As of June 30, 2026, Microsoft had 228,000 full-time employees globally, including 125,000 in the United States.