Meta, Microsoft plan cuts, buyouts that could affect 23,000 jobs
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A car passes Facebook's new Meta logo on a sign at the company headquarters on Oct. 28, 2021, in Menlo Park, Calif. Photo by AP Photo/Tony AvelarArticle contentMeta Platforms Inc. and Microsoft Corp. are planning cuts or announcing buyouts that could affect as many as 23,000 jobs, part of an effort to streamline operations and offset heavy spending on artificial intelligence.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentMeta told personnel in an internal memo on Thursday that it planned to cut 10 per cent of workers, or roughly 8,000 employees, starting on May 20. The social-media company also said it wouldn’t fill 6,000 open roles.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentEarlier in the day, Microsoft issued its own memo offering voluntary buyouts to thousands of its U.S. employees. About seven per cent of the U.S. workforce will be eligible for the buyouts, according to a person familiar with the planning. The company has never previously done buyouts of this scale, said the person, who requested anonymity to discuss an internal matter.Article contentWorkFP Work touches on HR strategy, labour economics, office culture, technology and more.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Work will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentMicrosoft had 125,000 employees in the U.S. as of June 2025. That would make about 8,750 workers eligible for the program.Article contentBig tech companies have been looking for ways to trim their expenses as they pour billions into data centres and other infrastructure to meet demand for artificial intelligence services.Article contentRecord spendingArticle contentMicrosoft is racing to construct data centers around the world and this month announced new AI investments in Japan and Australia. Meta, meanwhile, has projected record capital expenditures this year and has announced several multibillion-dollar deals with AI partners over the past few months. Both companies have instituted several rounds of layoffs in recent years.Article contentMeta alluded to its AI spending in the memo, which was written by Janelle Gale, chief people officer. “We’re doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making,” she wrote in the note, which was reviewed by Bloomberg.Article contentArticle contentMeta employees have spent much of the year fretting about job cuts, which already hit the Reality Labs division and other teams. Gale said that the company was announcing the layoffs early since details of the plan had already leaked. Reuters first reported on Meta’s planned workforce reductions earlier this month.Article contentRead More How Microsoft aims to feed AI's voracious needs and be a good neighbour Meta builds AI version of Mark Zuckerberg to interact with staff Article content“I know this is unwelcome news and confirming this puts everyone in an uneasy state, but we feel this is the best path forward, given the circumstances,” Gale wrote.Article contentMicrosoft’s buyout program is being offered to workers whose years of service plus their age totals 70 or more, excluding some senior roles or those on sales incentive plans, according to the memo from Chief People Officer Amy Coleman.Article content“I’ve never seen the company move with this level of urgency and pace, and I see the intensity and agility you bring every day,” Coleman wrote in the memo, which was reviewed by Bloomberg. “To sustain this pace, we have to stay focused on doing great work, trusting and empowering our managers and simplifying to support everyone.”Article contentBoth companies are scheduled to report quarterly earnings on April 29.Article contentBloomberg.comArticle contentTrending Canada doesn't have the leverage over the U.S. it seems to think it has, says trade lawyer Economy Canada's condo supply is about to fall off a cliff Real Estate An old factory in Welland, Ont., sat derelict for years — until someone discovered it could be worth billions Mining CPP, OAS and other strategies to help seniors face a more expensive retirement Debt Posthaste: Here's what the Bank of Canada will do when it moves on interest rates, says top think tank News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Canada doesn't have the leverage over the U.S. it seems to think it has, says trade lawyer Economy Canada's condo supply is about to fall off a cliff Real Estate An old factory in Welland, Ont., sat derelict for years — until someone discovered it could be worth billions Mining CPP, OAS and other strategies to help seniors face a more expensive retirement Debt Posthaste: Here's what the Bank of Canada will do when it moves on interest rates, says top think tank News