Microsoft and Meta’s Job Cuts: Heartbreaking Buyouts Could Impact 23,000 Lives | Urgent Tech News
Meta Platforms Inc. and Microsoft Corp. are poised to implement significant workforce reductions and voluntary buyout offers that could impact up to 23,000 jobs. This move aims to streamline operations and manage extensive investments in artificial intelligence.
In an internal memo released Thursday, Meta announced plans to reduce its workforce by 10%, translating to approximately 8,000 employees, beginning May 20. Additionally, the social media giant stated it would not fill 6,000 existing positions.
Earlier that same day, Microsoft communicated its strategy to offer voluntary buyouts to thousands of US employees, with about 7% of its workforce being eligible. According to a source familiar with the situation who requested anonymity, this marking represents a substantial first for the tech giant, which had not previously implemented buyouts at this scale. As of June 2025, Microsoft had around 125,000 employees in the US, suggesting that approximately 8,750 individuals might qualify for the program.
As major tech firms face increasing pressures to cut costs while investing heavily in infrastructure to support AI initiatives, both companies are actively seeking ways to optimize expenditures. Microsoft is engaged in a global data center expansion and recently announced new AI investments in Japan and Australia. Concurrently, Meta is forecasting record capital expenditures for the year and has established several multibillion-dollar partnerships in the AI field. Both organizations have already conducted multiple rounds of layoffs in recent years.
In her memo, Meta’s Chief People Officer Janelle Gale referenced the company’s ongoing AI expenditures. “We’re doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making,” she noted, emphasizing the necessity of the cuts. Employees at Meta have been anxious about the prospect of job losses, with recent layoffs affecting the Reality Labs division and other teams. Gale revealed that the company decided to announce the layoffs early due to leaks regarding the plan, which was originally reported by Reuters.
“I know this is unwelcome news and confirming this puts everyone in an uneasy state, but we feel this is the best path forward, given the circumstances,” Gale communicated in her memo.
Meanwhile, Microsoft’s buyout offers are tailored to employees whose combined years of service and age reach 70, with some senior roles and sales incentive positions excluded from eligibility. Chief People Officer Amy Coleman remarked in her memo, “I’ve never seen the company move with this level of urgency and pace, and I see the intensity and agility you bring every day. To sustain this pace, we have to stay focused on doing great work, trusting and empowering our managers, and simplifying to support everyone.”
Both Meta and Microsoft are set to release their quarterly earnings reports on April 29, providing additional insight into how these workforce reductions might impact their financial outlook. This latest development reflects the ongoing transformation and stringent measures within the tech industry as companies prioritize AI-driven innovation amid economic adjustments.
Original Source: https://www.business-standard.com/technology/tech-news/meta-microsoft-plan-job-cuts-buyouts-that-may-affect-up-to-23-000-roles-126042400103_1.html
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Publish Date: 2026-04-24 07:33:00
