AI Push Triggers Job Cuts as Meta and Microsoft Restructure Workforce

New Delhi — Global tech giants Meta Platforms and Microsoft are preparing for significant workforce restructuring, with thousands of jobs at risk as both companies intensify investments in artificial intelligence (AI) and streamline operations.

According to reports, Meta plans to cut around 10 per cent of its workforce—approximately 8,000 jobs—beginning May 20. The company, led by Mark Zuckerberg, is also freezing hiring for nearly 6,000 open roles as part of a broader cost-efficiency drive.

Microsoft, on the other hand, has introduced voluntary buyout offers to a section of its US employees. Around 7 per cent of eligible staff—potentially impacting nearly 8,750 workers—may opt into the programme as the company reshapes its workforce.

These moves come as both firms ramp up spending on AI infrastructure, including data centres and advanced technologies. Microsoft has recently expanded its global AI footprint with major investments in countries like Japan and Australia, while Meta is expected to record one of its highest-ever capital expenditures this year, alongside multiple large-scale AI partnerships.

The restructuring reflects a wider trend in the tech industry, where companies are reallocating resources to support AI-driven growth while tightening operational costs. Both Meta and Microsoft have already undergone several rounds of layoffs over the past two years as part of this transition.

Meta’s Chief People Officer, Janelle Gale, stated in an internal memo that the changes are aimed at improving efficiency and balancing investments. Similarly, Microsoft’s Chief People Officer, Amy Coleman, emphasized the need for agility and focus as the company adapts to shifting priorities.

Meanwhile, KPMG is also reportedly reducing its US audit partner ranks by about 10 per cent through voluntary early retirement initiatives.

Both Meta and Microsoft are set to announce their quarterly earnings later this month, which are expected to provide further insight into their AI-driven strategies and cost restructuring plans.

With inputs from IANS