tech
April 25, 2026
Microsoft and Meta to cut up to 16,000 jobs as AI costs surge
Microsoft and Meta plan major workforce reductions as rising AI investment costs pressure Big Tech firms, with up to 16,000 jobs reportedly at risk, the Financial Times reports
TL;DR
- Meta plans to lay off 10% of its workforce, approximately 8,000 employees, and cancel 6,000 open roles starting May 20.
- Microsoft is offering voluntary redundancy to around 7% of its US workforce, with over 8,000 employees eligible.
- Both companies are increasing capital expenditure significantly to invest in AI infrastructure, data centers, and talent.
- Meta anticipates 2026 capital expenditure to reach $115 billion to $135 billion.
- Microsoft previously cut over 15,000 jobs in 2025 and committed $140 billion to AI development.
- Job cuts linked to AI implementation are becoming common, with over 52,000 tech layoffs in Q1.
- A poll indicates 57% of Americans believe AI is advancing too fast, and 79% are concerned about government plans for worker protection.
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