Microsoft and Meta announce large staff reductions as they spend big on AI
Summary
Meta and Microsoft are reducing their staff by thousands as they invest heavily in artificial intelligence (AI). Both companies say AI is improving productivity, which means they need fewer workers for some tasks.Key Facts
- Meta announced it will cut about 10% of its staff, nearly 8,000 employees, and close 6,000 open jobs.
- Microsoft offered voluntary retirement to about 7% of its U.S. workforce, targeting employees whose age plus years at the company total 70 or more.
- Meta plans to spend between $115 billion and $135 billion on AI, nearly double its previous year’s investment.
- Microsoft forecasted AI infrastructure spending of $110 billion to $120 billion for the coming fiscal year.
- Both companies say AI allows smaller teams or even individuals to complete tasks that used to need larger teams.
- Microsoft CEO Satya Nadella stated that AI handles up to 30% of the company’s coding work.
- Meta is expected to have about half of its development work done by AI within a year.
- Employees’ activities, like mouse movements and keystrokes, are being recorded to help train AI systems.
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