Meta Platforms and Microsoft have both moved to shrink their workforces as AI spending surges, with two of the world’s largest tech companies pursuing parallel cost-cutting paths.
Meta told staff in an internal memo that it plans to cut roughly 8,000 positions—about 10% of its workforce—starting May 20. The company also said it would not fill 6,000 open roles.
Earlier the same day, Microsoft offered voluntary buyouts to thousands of US employees. Approximately 7% of its US workforce qualifies, according to a person familiar with the planning. With 125,000 US employees as of June 2025, that translates to roughly 8,750 workers eligible for the program.
Chief People Officer Janelle Gale wrote in the Meta memo that the reductions would “allow us to offset the other investments we’re making.” Earlier workforce cuts had already affected the Reality Labs division and other teams.
Microsoft’s buyout program targets employees where years of service plus age totals 70 or more, excluding certain senior roles or sales incentive plan participants. Chief People Officer Amy Coleman said in her memo that the company was moving “with this level of urgency and pace” to sustain momentum.
Both companies are set to report quarterly earnings on April 29.
Record AI Spending
Microsoft is racing to build data centers globally and announced new AI investments in Japan and Australia this month. Meta has projected record capital expenditures for the year and announced several multibillion-dollar AI partnerships in recent months.
Both companies have conducted multiple rounds of layoffs in recent years.
