Thousands of jobs to be cut at tech giants Meta and Microsoft
Facebook and Instagram owner Meta said it plans to cut around 8,000 jobs
Meta and Microsoft have revealed plans to cut thousands of jobs as the technology giants invest heavily in AI to drive growth.
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Facebook and Instagram owner Meta said it plans to cut around 8,000 jobs, or 10 per cent of its workforce, to help boost efficiency.
In a memo sent to staff, the company said the move will allow new investments in parts of the business.
Meta also said it will leave around 6,000 job posts unfilled as part of the shake-up.
The cuts come amid a backdrop of recording capital spending plans as Meta seeks to keep pace with its rivals amid intense competition surrounding AI technology.
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.
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Matt Britzman, senior equity analyst, Hargreaves Lansdown, said: “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.”
Meanwhile, Microsoft has taken a different approach to cut its workforce, launching a major voluntary redundancy programme.
Microsoft plans to make the offers in early May to about 8,750 people, or 7 per cent of its US workforce.
Both firms will brief investors with trading updates next week.