Meta announced on Thursday that it will be reducing its workforce by approximately 8,000 employees, equivalent to around 10% of its total staff. This decision comes as part of the company’s efforts to increase investments in artificial intelligence infrastructure and hiring highly skilled AI professionals. The company stated that these layoffs are aimed at improving efficiency and reallocating resources to other areas of the business. Bloomberg first reported on this development, noting that Meta will also leave around 6,000 positions vacant.
The move to downsize the workforce is a strategic response to the rising costs associated with artificial intelligence technologies, a trend that is impacting companies like Meta and Oracle. Meta had previously informed investors about the anticipated surge in expenses for 2026, ranging between $162 billion US and $169 billion US, primarily driven by infrastructure investments and competitive compensation for AI experts. Wedbush analyst Dan Ives viewed Meta’s workforce reduction positively, attributing it to the company’s strategy of leveraging AI tools to automate tasks, streamline operations, cut costs, and maintain productivity through a more efficient operating structure.
The specifics of where these job cuts will occur remain unclear, although Meta has offices in various locations, including Vancouver, Toronto, and Montreal. In a related development, Microsoft also revealed on Thursday its plan to offer voluntary buyouts to thousands of its U.S. employees. The tech giant intends to extend these offers to approximately 8,750 individuals, representing seven percent of its U.S. workforce. Microsoft, headquartered in Redmond, Washington, has made substantial investments in building a global network of data centers to support cloud computing services, AI systems, and productivity tools such as the AI assistant Copilot.
Microsoft’s initiative to provide voluntary buyouts was disclosed in a memo from the company’s chief people officer, Amy Coleman. The retirement plan is intended to offer eligible employees the opportunity to transition on their own terms with full support from the company. This marks the first time in Microsoft’s 51-year history that such a buyout program has been implemented.
