August M
Major technology companies are scaling back their workforces while accelerating investment in artificial intelligence.
The shift reflects a broader industry move toward automation and high-cost infrastructure.
According to Sky News, Microsoft and Meta have both announced significant job reductions as they redirect resources into AI development. The changes highlight how the rapid expansion of the technology is reshaping hiring priorities across the sector.
Meta, the parent company of Facebook, Instagram and WhatsApp, confirmed it will cut around 8,000 roles, roughly 10% of its workforce. The company also plans to leave about 6,000 vacancies unfilled.
Cost and competition
Sky News reports that Meta’s spending is set to rise sharply, with projections exceeding $160bn in 2026 compared with nearly $120bn the previous year.
The increase reflects intense competition among tech firms to secure skilled AI specialists, alongside the growing costs of building and maintaining data centres required for advanced systems.
At the same time, automation is reducing the need for certain roles, contributing to workforce reductions.
Microsoft moves
Microsoft is also reducing staff through a voluntary redundancy programme. According to the Associated Press, around 8,750 employees in its core US workforce could be affected, representing about 7% of its total staff.
CNBC, cited by Sky News, reported that employees were informed of the plan through a company memo ahead of its expected rollout.
“Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” wrote chief people officer Amy Coleman.
Industry trend
The developments are part of a wider pattern across major US technology firms, many of which have announced layoffs in recent years while increasing spending on AI.
Analysts say companies are balancing rising operational costs with the need to remain competitive in a fast-evolving field.
The latest announcements underline a key shift in the industry: as AI capabilities expand, companies are restructuring their workforces to prioritise new technological demands.
Sources: Sky News, CNBC, Associated Press
