Meta, Microsoft purge jobs amid AI build-up

Job Cuts and AI Expansion

Meta, the parent company of Facebook, has announced plans to reduce its workforce by 10%, while Microsoft is introducing an early retirement program. This workforce reduction aligns with both companies’ significant investments in artificial intelligence.

On Thursday, the social media giant confirmed that approximately 8,000 employees will be laid off, representing a 10% cut. The first phase of these reductions is set for May 20. Additionally, Meta stated that 6,000 more positions will remain open, signaling a strategic shift toward AI development.

Microsoft’s Early Retirement Scheme

Meanwhile, US media reported that Microsoft is set to offer voluntary buyouts to around 8,700 workers, or roughly 7% of its total staff. This initiative marks a new approach for the company, which was established in 1975.

Investment in AI Infrastructure

Both firms are increasing their budgets for AI research and development. Meta emphasized its ambition to create “personal superintelligence,” a concept proposed by CEO Mark Zuckerberg to deliver customized AI tools for users. According to Zuckerberg, this technology will deeply understand individual needs and goals, enabling more effective personal assistance.

“Personal superintelligence that knows us deeply, understands our goals, and can help us achieve them will be by far the most useful. Personal devices like glasses that understand our context because they can see what we see, hear what we hear, and interact with us throughout the day will become our primary computing devices,” Zuckerberg wrote in July 2025.

Microsoft, on the other hand, is allocating billions to expand its global data center network, which supports cloud services and AI systems such as Copilot. Investor anxieties about data center costs and long-term profitability have influenced Microsoft’s stock performance over the past six months.

Meta has warned investors that infrastructure and AI hiring expenses could reach $169 billion by 2026. The company’s strategic realignment aims to accelerate AI application development, even as it streamlines operations. This move underscores the growing emphasis on AI as a core growth driver in the tech sector.