Meta and Microsoft have announced plans to cut thousands of jobs as the technology giants ramp up investment in artificial intelligence to drive growth.
Meta job cuts
Facebook and Instagram owner Meta said it plans to cut around 8,000 jobs, equivalent to 10% of its workforce, in a bid to boost efficiency. In a memo to staff, the company stated that the move will allow new investments in key areas of the business. Additionally, Meta will leave around 6,000 job posts unfilled as part of the restructuring.
The cuts come amid record capital spending plans as Meta seeks to keep pace with rivals in the fiercely competitive AI sector. Chief executive and founder Mark Zuckerberg is leading aggressive spending on talent and technology infrastructure to support new AI products, including chatbots and large language models.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, commented: “Reports of further headcount reductions at Meta come as little surprise and, while unfortunate for all involved, should be taken as a broadly positive signal. With heavy investment in top AI talent, trimming elsewhere points to a sharper focus on the individuals driving the next leg of growth.”
Microsoft voluntary redundancy
Meanwhile, Microsoft has taken a different approach to reducing its workforce, launching a major voluntary redundancy programme. The company plans to make offers in early May to approximately 8,750 people, representing 7% of its US workforce.
Both firms are set to brief investors with trading updates next week, providing further details on their financial performance and strategic direction.
