Meta Platforms will cut about 8,000 jobs, or roughly 10% of its workforce, as part of the restructuring.
The company said it was making the cuts for efficiency reasons and to allow for new investment in parts of its business. It also plans to leave about 6,000 roles vacant, Bloomberg reports.
While Meta has not released a detailed breakdown of the departments affected, multiple reports suggest the restructuring is part of a broader effort to reduce management levels and prioritize technical and engineering teams. The company also did not publicly outline the terms of the severance package or disclose the full content of internal communications to employees.
The move comes as Meta ramps up spending on AI infrastructure and talent. The company warned investors that its spending will rise sharply to between $162 billion and $169 billion in 2026, driven by infrastructure costs and employee compensation, especially for artificial intelligence experts it hires at high salaries.
Meanwhile, Microsoft is offering voluntary buyouts to roughly 8,750 employees in the United States, covering nearly 7% of its domestic workforce.
The company said the program is part of “ongoing organizational changes” aimed at ensuring long-term growth.
“We hope this program will give eligible individuals the choice to take the next step on their own terms, with generous support from the company,” Amy Coleman wrote in a memo to employees, according to CNBC.
“We continue to implement the organizational changes necessary to best position the company for success in a dynamic marketplace,” Microsoft said in a statement.
Dan Ives of Wedbush Securities said he sees it as part of a strategy to use AI tools to “automate tasks that once required large teams, allowing the company to streamline operations and reduce costs while maintaining productivity, leading to an increased need for a leaner operational structure.”
