Meta announced on Thursday that it is reducing its workforce by approximately 8,000 employees, which represents about 10% of its total workforce. The company stated that the layoffs are part of an effort to enhance efficiency and facilitate new investments in various business areas. These changes are in line with Meta’s increased spending on artificial intelligence infrastructure and the hiring of highly skilled AI professionals.
While Meta’s decision to cut jobs differs from the sudden layoffs seen at other tech companies like Oracle, it reflects the industry trend of significant investments in artificial intelligence technologies. Meta has indicated that its expenses for 2026 are expected to rise significantly, primarily due to infrastructure costs and generous compensation for AI experts.
Analyst Dan Ives from Wedbush expressed support for Meta’s restructuring, emphasizing the strategic use of AI tools to automate tasks and streamline operations, leading to cost savings and increased productivity. The exact locations of the job cuts within Meta, which has offices in Vancouver, Toronto, and Montreal, remain unspecified.
In a separate development, Microsoft revealed its plans to offer voluntary buyouts to around 8,750 U.S. employees, accounting for approximately seven percent of its workforce in the country. These buyouts are part of Microsoft’s ongoing efforts to optimize its operations and adapt to the evolving demands of cloud computing services, AI systems, and productivity tools such as Copilot.
Microsoft’s dedicated investments in global data centers and AI technologies underscore its commitment to innovation and sustainability. The company’s decision to offer voluntary retirement plans marks a significant step, as it is the first program of its kind in Microsoft’s 51-year history.