Microsoft and Meta to cut thousands of jobs | Money News

Microsoft and Meta, the company behind Instagram and WhatsApp, are planning to cut big chucks from their respective workforces as spending on artificial intelligence (AI) finds a new high gear.

Meta said it was laying off about 8,000 workers, or about 10% of its workforce, in a bid to make efficiency savings as it ramps up investment.

Around 6,000 job vacancies were also to be left unfilled, it confirmed.

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Meta had previously told investors that spending would top $160bn during 2026 – up from just shy of $120bn last year.

The company, is competing with rivals to hire AI experts and, at the same time, is facing huge bills for data centres to power the technological development.

The announcement marks the continuation of a job cut trend across major US tech firms in recent years.

Microsoft said it was offering a voluntary redundancy programme, which the AP news agency reported would affect about 8,750 people within its core US workforce.

The number equates to 7% of its total staff.

Sky’s US partner CNBC had earlier reported the existence of the voluntary scheme, which is due to be rolled out early next month.

The news provider said staff were alerted to it in a memo from the company’s chief people officer, Amy Coleman.

“Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” she wrote, according to CNBC.