Microsoft and Meta announce large staff reductions as they spend big on AI

Meta said it would cut 10% of it employees while Microsoft will offer voluntary retirement to about 7% of workers

Meta and Microsoft are trimming their workforces by thousands as they make heavy investments in AI and executives claim that the technology is meeting their companies’ productivity needs.

Meta told staff on Thursday that on 20 May it would cut some 10% of its personnel – just under 8,000 employees– to boost efficiency, part of a layoff plan https://www.theguardian.com/technology/2026/mar/13/meta-layoffs-ai">made months ago.

The company is also closing about 6,000 open roles.

The same day, Microsoft https://www.ft.com/content/f5776fd6-22f3-43d1-806b-9858b64cfd18?syn-25a6b1a6=1">announced to employees, for the first time, that it would offer voluntary retirement to about 7% of its American workforce of roughly 125,000.