Meta announced a workforce reduction of approximately 8,000 employees, representing around 10% of its staff, to allocate resources towards enhancing its artificial intelligence infrastructure and hiring top AI experts. The move aims to enhance operational efficiency and facilitate investments in key areas of the company. Reports suggest that Meta will also keep around 6,000 positions vacant.
This decision aligns with the industry trend of significant spending on artificial intelligence technology, leading to financial pressures. Meta anticipates substantial expenses in 2026, ranging between $162 billion US and $169 billion US, primarily driven by infrastructure development and competitive salaries for AI professionals.
Market analyst Dan Ives viewed Meta’s layoffs positively, highlighting the company’s strategic shift towards leveraging AI tools for automating tasks, streamlining operations, and reducing costs while maintaining productivity. The specific locations or departments affected by the layoffs within Meta, which has offices in Vancouver, Toronto, and Montreal, remain undisclosed.
In a separate development, Microsoft disclosed plans to offer voluntary buyout packages to approximately 8,750 U.S. employees, constituting about 7% of its American workforce. The tech giant’s move comes as it continues to expand its global network of data centers supporting cloud services, AI technologies, and productivity tools like the AI assistant Copilot.
Microsoft’s investment in carbon-free energy sources and AI technologies has been a focus, with a recent pledge to invest $19 billion in Canada. The company’s chief people officer, Amy Coleman, introduced the voluntary retirement program in a memo, marking it as the first such initiative in Microsoft’s 51-year history.