Thousands of IT jobs set to disappear as Meta, Microsoft restructure workforce in AI era

Meta Platforms and Microsoft plan major job cuts and buyouts amid rising AI investments. Workforce reductions and restructuring aim to streamline operations while expanding data centres and infrastructure to support growing artificial intelligence initiatives globally

New Delhi: Tech giants Meta Platforms and Microsoft may cut thousands of jobs and offer voluntary buyouts, as the technology firms step up efforts to streamline operations amid heavy investments in artificial intelligence (AI), according to multiple reports.

Meta reportedly told employees in an internal memo that it plans to cut about 10 per cent of its workforce or roughly 8,000 jobs, starting May 20. The Mark Zuckerberg-backed firm has also decided not to fill around 6,000 open positions as part of its broader restructuring exercise.

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Meanwhile, Microsoft has offered voluntary buyouts to a section of its US workforce. As per reports, about 7 per cent of US employees eligible for the programme, which could impact around 8,750 workers based on current staffing levels.

The restructuring comes as both companies accelerate spending on AI infrastructure, including data centres and related technologies.

Moreover, Microsoft is expanding its global data centre footprint, with recent AI-related investments announced in markets such as Japan and Australia.

Similarly, Meta has projected record capital expenditure this year and has signed multiple multi-billion-dollar deals with AI partners in recent months. In addition, both companies have undertaken several rounds of workforce reductions over the past two years as they recalibrate cost structures alongside rising AI investments.

Meta’s internal memo, attributed to Chief People Officer Janelle Gale, linked the move to efficiency measures and investment balancing. “We are doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we are making,” she was quoted as saying.

Microsoft Chief People Officer Amy Coleman, in a memo to staff, said the company was moving with urgency as it adapts to evolving priorities. “To sustain this pace, we have to stay focused on doing great work, trusting and empowering our managers and simplifying to support everyone,” she said.

Both Meta and Microsoft are scheduled to report their quarterly earnings at the end of April. Meanwhile, another report said that KPMG is trimming its US audit partner ranks by about 10 per cent as part of a long-running effort to encourage voluntary early retirements.