Meta, Microsoft Cut 8,000 Jobs Each for AI Investments

Meta and Microsoft announced significant workforce reductions this week, affecting thousands of employees as both companies ramp up investments in artificial intelligence. The moves, disclosed on April 23, 2026, come amid surging AI spending across the tech sector and projections of explosive growth in the Asia-Pacific region.

Meta informed staff it would eliminate roughly 8,000 positions, or 10 percent of its workforce, effective May 20, while closing about 6,000 open job postings. Chief People Officer Janelle Gale described the cuts in an internal memo as a way to offset other investments, with affected employees eligible for severance. Meta CEO Mark Zuckerberg had previously stated on an earnings call that projects once requiring large teams can now be handled by a single person aided by AI. Similarly, Microsoft offered voluntary buyouts to over 8,000 U.S. employees, targeting those whose age plus tenure equals 70 or more. Microsoft AI chief Mustafa Suleyman predicted in February that AI could replace most white-collar work within 12 to 18 months, while CEO Satya Nadella noted AI handles up to 30 percent of internal coding.

Banks including Bank of America, Citi, and Wells...