Meta Layoffs, Microsoft Buyouts Signal AI Reset
Meta plans about 8,000 job cuts, while Microsoft is offering voluntary buyouts to eligible US staff as Big Tech redirects spending toward AI infrastructure and talent.
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Meta and Microsoft are taking fresh steps to reduce workforce costs as large technology companies continue to increase spending on artificial intelligence infrastructure and talent.
Meta plans to cut about 10% of its workforce, or roughly 8,000 employees, according to an internal memo reported by Bloomberg. The layoffs are expected to begin on 20 May. The company also plans to leave about 6,000 open roles unfilled.
The move follows earlier reductions across parts of Meta, including Reality Labs, sales, operations and recruitment, as the company shifts resources toward AI and other higher-priority areas. Meta has also projected sharply higher capital spending to support AI infrastructure and data centers.
Microsoft, meanwhile, is offering a one-time voluntary retirement program to some US employees, its first such large-scale buyout program, according to reports citing an internal memo. The offer applies to employees at the senior director level and below whose age and years of service add up to at least 70.
About 7% of Microsoft’s US workforce is eligible. Microsoft had about 228,000 full-time employees globally as of 30 June 2025, including 125,000 in the US, according to its annual report. That puts the eligible pool at about 8,750 employees, though actual exits will depend on how many accept the offer.
Employees with sales incentive plans are excluded from the program, and eligible workers and their managers are expected to receive details on 7 May.
“Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” Microsoft Chief People Officer Amy Coleman wrote in the memo, according to CNBC and other reports.
The workforce moves come as Big Tech firms try to manage costs while expanding spending on AI systems, data centers and computing capacity. Meta is opting for direct layoffs, while Microsoft is using a voluntary program that could reduce headcount before its next fiscal year.
