Microsoft and Meta cut thousands of staff as they bet big on AI | First Thing
Summary
Meta and Microsoft are cutting thousands of jobs as they focus more on artificial intelligence (AI) to improve productivity. Meta will lay off about 8,000 employees and close 6,000 open roles, while Microsoft will offer voluntary retirement to about 7% of its US workers. Both companies say AI is reducing the need for some hiring.Key Facts
- Meta plans to cut 10% of its workforce, about 8,000 employees, and close 6,000 job openings.
- Microsoft is offering voluntary retirement to about 7% of its roughly 125,000 US employees.
- Meta and Microsoft say AI advancements are helping reduce hiring needs.
- Meta’s CEO Mark Zuckerberg said in January that AI is making some jobs unnecessary.
- Microsoft’s AI chief Mustafa Suleyman predicts AI could replace most office jobs in 12 to 18 months.
- Over 92,000 workers in the tech sector have lost jobs in the first four months of 2026.
- Some experts say companies may be using AI as an excuse to cut jobs due to economic pressures.
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