Meta, Microsoft Look to Trim Workforces Amid Heavy AI Spending
(Bloomberg) — Meta Platforms Inc. and Microsoft Corp. have taken serious steps to reduce their workforces to streamline their operations and offset heavy spending on artificial intelligence.
In an internal memo to staff on Thursday, Meta said it planned to lay off 10% of employees, or about 8,000 employees, starting May 20. The social media company also said it would not fill 6,000 open positions.
Earlier in the day, Microsoft issued its own statement offering voluntary buyouts to thousands of US employees. About 7 percent of the U.S. workforce will be eligible for buyouts, according to a person familiar with the planning. The person, who asked to remain anonymous to discuss an internal matter, said the company had never made an acquisition of this scale before.
Microsoft had 125,000 employees in the US as of June 2025. This will make approximately 8,750 employees eligible for the program.
Big tech companies are looking for ways to cut expenses as they pour billions of dollars into data centers and other infrastructure to meet demand for AI services.
Microsoft is racing to build data centers around the world and this month announced new AI investments in Japan and Australia. Meta, meanwhile, is forecasting record capital spending this year and has announced multibillion-dollar deals with AI partners in the past few months. Both companies have initiated several layoffs in recent years.
Meta touched on AI spending in a note written by chief people officer Janelle Gale. “We are doing this as part of our ongoing efforts to manage the company more efficiently and allow us to balance other investments we have made,” he wrote in the memo reviewed by Bloomberg.
Meta employees spent much of the year worrying about layoffs, which also affected the Reality Labs division and other teams. Gale said the company announced the layoffs early because details of the plan had already been leaked. Reuters first reported Meta’s planned workforce reduction earlier this month.
“I know this is unwelcome news and confirming this puts everyone in an uneasy position, but we feel this is the best path forward given the circumstances,” Gale wrote.
Microsoft’s buyout program is offered to workers with years of service plus age totaling 70 or more, except for some senior roles or those covered by sales incentive plans, according to a note from Chief People Officer Amy Coleman.
“I have never seen the company move with this level of urgency and speed, and I see the intensity and agility you bring every day,” Coleman wrote in the memo reviewed by Bloomberg. “To maintain this pace, we must focus on doing great work, trusting and empowering our managers, and simplifying in a way that supports everyone.”
Both companies are scheduled to report quarterly earnings on April 29.
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