Meta, the parent company of Facebook and Instagram, announced plans to lay off approximately 8,000 employees, or 10% of its workforce, as it accelerates the development of artificial intelligence (AI) applications. According to an internal memo, the first round of cuts is scheduled for May 20. Meta also plans to leave 6,000 additional positions unfilled.

On the same day, US media reported that tech giant Microsoft is offering a voluntary early retirement buyout program to roughly 8,700 workers, about 7% of its workforce. This is a first for the legacy company founded in 1975.

Both companies are ramping up spending on AI development. Meta has warned investors that infrastructure costs and hiring AI experts could reach as high as $169 billion by 2026. Microsoft is spending billions on expanding a global network of data centers that power cloud computing and AI systems like Copilot.

Meta CEO Mark Zuckerberg wrote in July 2025: "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."

Investor concerns about the costs and eventual profitability of data centers have weighed heavily on Microsoft's share price over the past six months. The job cuts at both companies reflect a trend of workforce reductions amid massive AI investments.

Source: www.dw.com