Asger Risom
Meta and Microsoft are cutting thousands of jobs while directing record levels of investment into artificial intelligence, signalling a major shift in priorities across the tech sector.
Major shifts are underway in the global tech sector as companies rethink priorities.
Two industry leaders are making major workforce changes while ramping up artificial intelligence investments.
Sweeping job cuts
Meta Platforms will reduce its workforce by about 10%, affecting roughly 8,000 employees, according to Agerpres, citing Anadolu and Xinhua. The company is also scrapping around 6,000 open roles.
The layoffs are set for May 20 and are part of a wider plan to streamline operations and manage rising AI-related costs.
Meta said the move is intended to improve efficiency while continuing to fund advanced technologies, including Large Language Models.
Affected staff will receive severance pay and support services, the company said.
AI spending push
Chief executive Mark Zuckerberg is increasing spending on artificial intelligence infrastructure and partnerships. Meta has projected record capital expenditure this year of between $115 billion and $135 billion.
This reflects a wider shift across the tech industry, where companies are redirecting resources toward AI systems and computing power.
As of December 31, 2025, Meta employed 78,865 people globally, underlining the scale of the cuts.
Microsoft response
Microsoft has separately launched a voluntary departure program targeting up to 7% of its US workforce, Agerpres reported.
The scheme is open to both employees and executives as the company adapts to changes driven by artificial intelligence.
Microsoft said the move also supports adjustments to its internal compensation structure and long-term planning.
Industry transition
Like Meta, Microsoft is expanding investment in data centers to support AI services, mirroring a broader transformation across the sector.
By mid-2026, Microsoft had 228,000 employees worldwide, including 125,000 in the United States.
The developments highlight how major technology firms are reshaping their workforces to fund the next phase of AI growth.
Sources: Agerpres, Anadolu, Xinhua
