Meta Platforms and Microsoft are planning workforce reductions and buyout programmes that could impact up to 23,000 employees, as both companies look to streamline operations and offset rising investments
in artificial intelligence, according to a report by Bloomberg.
Meta has informed employees through an internal memo that it plans to cut about 10% of its workforce—roughly 8,000 jobs—starting May 20, while also leaving around 6,000 open roles unfilled. The memo, written by Chief People Officer Janelle Gale, indicated that the move is aimed at improving efficiency and balancing increased spending on AI-related initiatives.
Meanwhile, Microsoft has offered voluntary buyouts to thousands of its US-based employees. Around 7% of its US workforce could be eligible, translating to roughly 8,750 employees based on its headcount of 125,000 as of June 2025. The buyout programme, outlined in a memo by Chief People Officer Amy Coleman, is one of the largest of its kind undertaken by the company.
The moves come as Big Tech ramps up spending on AI infrastructure. Microsoft has been expanding its global data centre footprint and recently announced new AI investments in Japan and Australia. Meta, on the other hand, has guided for record capital expenditure this year and signed multiple multi-billion-dollar AI partnerships in recent months.
Meta acknowledged in its memo that the cuts are part of broader restructuring efforts tied to AI investments. The company has already undertaken layoffs in divisions such as Reality Labs earlier this year. Gale noted that the announcement was brought forward after details of the plan began to leak, adding that while the decision may cause uncertainty, it is necessary under current conditions.
At Microsoft, the buyout offer is being extended to employees whose age and years of service together total at least 70, with some exceptions for senior roles and sales-linked positions. Coleman emphasised the need for speed and efficiency, stating that simplifying operations would help sustain the company’s current pace of execution.
Both Meta and Microsoft are scheduled to report their quarterly earnings on April 29, with investors closely watching spending trends and margin outlook amid the ongoing AI investment cycle.
