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Meta, Microsoft Cut Thousands of IT Jobs Amid AI Shift

Meta Platforms plans to cut about 10% of its workforce, or roughly 8,000 jobs, starting May 20, and will not fill 6,000 open positions. Microsoft has offered voluntary buyouts to about 7% of its US employees, potentially impacting 8,750 workers. Both companies are restructuring to streamline operations and offset heavy investments in artificial intelligence infrastructure. The moves come as Meta and Microsoft accelerate spending on data centers and AI technologies globally.

Key Points: Meta, Microsoft Cut Thousands of IT Jobs in AI Era

  • Meta to cut 8,000 jobs starting May 20
  • Microsoft offers buyouts to 7% of US workforce
  • Both firms accelerate AI infrastructure spending
  • Restructuring follows multiple rounds of layoffs over two years
2 min read

Thousands of IT jobs set to disappear as Meta, Microsoft restructure workforce in AI era

Meta plans to cut 10% of its workforce, while Microsoft offers voluntary buyouts to US staff. Both firms shift focus to AI investments.

"We are doing this as part of our continued effort to run the company more efficiently - Janelle Gale"

New Delhi, April 24

Tech giants Meta Platforms and Microsoft may cut thousands of jobs and offer voluntary buyouts, as the technology firms step up efforts to streamline operations amid heavy investments in artificial intelligence, according to multiple reports.

Meta reportedly told employees in an internal memo that it plans to cut about 10 per cent of its workforce or roughly 8,000 jobs, starting May 20.

The Mark Zuckerberg-backed firm has also decided not to fill around 6,000 open positions as part of its broader restructuring exercise.

Meanwhile, Microsoft has offered voluntary buyouts to a section of its US workforce.

As per reports, about 7 per cent of US employees eligible for the programme, which could impact around 8,750 workers based on current staffing levels.

The restructuring comes as both companies accelerate spending on AI infrastructure, including data centres and related technologies.

Moreover, Microsoft is expanding its global data centre footprint, with recent AI-related investments announced in markets such as Japan and Australia.

Similarly, Meta has projected record capital expenditure this year and has signed multiple multi-billion-dollar deals with AI partners in recent months.

In addition, both companies have undertaken several rounds of workforce reductions over the past two years as they recalibrate cost structures alongside rising AI investments.

Meta's internal memo, attributed to Chief People Officer Janelle Gale, linked the move to efficiency measures and investment balancing.

"We are doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we are making," she was quoted as saying.

Microsoft Chief People Officer Amy Coleman, in a memo to staff, said the company was moving with urgency as it adapts to evolving priorities.

"To sustain this pace, we have to stay focused on doing great work, trusting and empowering our managers and simplifying to support everyone," she said.

Both Meta and Microsoft are scheduled to report their quarterly earnings at the end of April.

Meanwhile, another report said that KPMG is trimming its US audit partner ranks by about 10 per cent as part of a long-running effort to encourage voluntary early retirements.

- IANS

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Reader Comments

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Vikram M
Classic cycle—every time tech booms, they overhire, then slash jobs when the next shiny thing (AI here) comes along. Indian IT services firms like TCS and Infosys will feel the ripple too. Need to upskill, folks.
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Sarah B
I work in a multinational's Indian office. The vibe here is tense—team leads aren't saying much, but you can feel it. Making AI investments at the cost of human jobs feels short-sighted. What about the people who helped build these companies? 😞
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Neha E
Voluntary buyouts at Microsoft sound nice on paper, but practically it's pressure—especially for mid-career folks with families. India's IT sector needs a serious rethink. AI is the future, but we shouldn't forget the human element.
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Rohan X
Respectfully, this is a wake-up call. Jobs that can be automated—testing, some coding tasks, data entry—will shrink. But AI also creates new roles. The real problem? India's education system isn't training people fast enough for AI-related skills. Government and companies need to collaborate on reskilling. 🇮🇳
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Priyanka N
So Meta cuts 8,000 and Microsoft offers buyouts to another 8,750—that's ~17,000 jobs gone in one go. And KPMG is also trimming audit partners. This is a global trend. India's IT hubs like Hyderabad and Pune will feel the pinch. It's heartbreaking for young graduates entering the market. 😢

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