Facebook’s parent company Meta announced Thursday it will eliminate approximately 8,000 positions, representing roughly 10% of its total staff, as the social media giant continues investing heavily in artificial intelligence technology and recruiting high-paid AI specialists.
According to Bloomberg’s initial reporting, the company cited efficiency improvements and strategic reinvestment as reasons for the workforce reduction. Meta also plans to keep approximately 6,000 current job openings vacant.
In a separate development Thursday, Microsoft revealed plans to offer voluntary retirement packages to thousands of its American workers.
The Redmond, Washington-based technology company will extend these voluntary departure offers in early May to approximately 8,750 employees, representing 7% of its domestic workforce, according to two sources with knowledge of the initiative who requested anonymity.
Unlike the immediate job cuts implemented by technology companies including Meta and Oracle, Microsoft’s approach provides an alternative through voluntary departures. However, the cost-saving measures appear connected to similar industry-wide changes requiring substantial artificial intelligence investments. Meta has already informed investors that its 2026 operating expenses will increase substantially to between $162 billion and $169 billion, primarily due to infrastructure development and compensation for artificial intelligence specialists commanding exceptionally high salaries.
Wedbush analyst Dan Ives expressed support for Meta’s workforce reduction in a Thursday investor note.
Ives characterized the move as part of a broader approach utilizing AI technology to “automate tasks that once required large teams, allowing the company to streamline operations and reduce costs while maintaining productivity driving an increased need for a leaner operating structure.”
Microsoft has invested billions operating an expanding worldwide network of data centers that support cloud computing services, artificial intelligence systems, and its productivity software suite, including the AI-powered Copilot assistant.
CNBC previously reported on an internal memorandum from Microsoft’s chief people officer, Amy Coleman, announcing the voluntary departure program.
“Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” Coleman stated in the memo, according to CNBC’s reporting.
