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Meta to cut 8,000 jobs as AI costs surge, Microsoft offers buyouts

While the company has not detailed which departments will be affected, reports suggest a move to reduce layers of management and strengthen core product teams.

By Trisha Katyayan

Apr 24, 2026 13:19 IST

Meta Platforms is set to cut around 8,000 jobs, roughly 10 per cent of its workforce, as part of a broader restructuring effort aimed at improving efficiency and redirecting investments. The company also plans to leave nearly 6,000 roles unfilled, according to reports cited by Mint.

Meta trims workforce, shifts focus

The layoffs come as Meta looks to streamline operations and prioritise technical and engineering roles. While the company has not detailed which departments will be affected, reports suggest a move to reduce layers of management and strengthen core product teams.

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The restructuring is also linked to Meta's increasing investment in artificial intelligence. The company has indicated that its expenses could rise significantly in 2026, estimated between $162 billion and $169 billion, driven by infrastructure expansion and high compensation for AI talent.

AI push drives cost pressures

Meta's growing focus on AI has led to increased spending on data centres, computing infrastructure and specialised talent. The decision to cut jobs and freeze certain roles appears to align with efforts to balance rising costs while continuing to invest in future technologies.

The company has not released details on severance packages or internal communications regarding the layoffs.

Microsoft announces buyout programme

Meanwhile, Microsoft is offering voluntary buyouts to approximately 8,750 employees in the United States, accounting for nearly 7 per cent of its domestic workforce. The move is part of what the company described as "ongoing organisational changes".

"Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support," Amy Coleman said in a memo to employees, as reported by CNBC.

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The developments at Meta and Microsoft reflect a wider shift across the tech sector as companies adjust to the growing role of AI. Analysts say businesses are increasingly using AI tools to automate tasks, reduce operational costs and operate with leaner teams, even as demand for specialised talent continues to rise.

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