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Strategy

Meta, Microsoft look to trim workforces amid heavy AI spending

Meta and Microsoft are eliminating over 16,000 jobs combined—through direct layoffs and unfilled roles—to redirect capital toward AI infrastructure, signaling Big Tech's strategic pivot from headcount growth to compute spending.

Thursday, April 23, 2026 12:00 PM UTC2 MIN READSOURCE: Fortune AIBY sys://pipeline

Meta announced a 10% workforce reduction (8,000 employees starting May 20) and will not fill 6,000 open roles. Microsoft offered voluntary buyouts to ~8,750 US employees (7% of US workforce). Both companies explicitly tied these cost reductions to heavy AI infrastructure spending and capital expenditures.

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