Meta cuts 8,000 jobs as Big Tech grapples with AI spending costs
Meta will eliminate 10% of its workforce, or about 8,000 employees, the company announced Thursday. The cuts reflect mounting pressure across Big Tech to control costs as companies spend billions on AI infrastructure and development.
Microsoft is taking a different approach for now, offering voluntary buyouts to some U.S. employees. The program targets senior directors and below whose age plus years at the company total at least 70. This marks Microsoft's first buyout offer, though the company laid off thousands of workers in 2025.
The scale of AI spending
Amazon, Google, Meta, and Microsoft alone plan to spend roughly $650 billion on capital expenditures in 2026, mostly for data centers and AI model development. That spending is reshaping how these companies approach their payroll.
Amazon, Google, and Oracle have also announced layoffs over the past year. Each company is managing the tension between expanding AI capabilities and maintaining profitability.
Broader workforce contraction
These cuts follow years of tech industry layoffs that began after the pandemic-era hiring boom ended. Companies that rapidly expanded their workforces are now right-sizing operations.
Meta stock is roughly flat this year. Microsoft stock fell about 4% on Thursday but rose slightly Friday, though it remains down 15% for the year.
HR leaders managing similar organizational changes may find value in understanding how AI spending decisions drive workforce planning. The AI Learning Path for CHROs covers workforce strategy during periods of technological transition. Additional resources on AI for Human Resources address talent management in evolving tech environments.
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