Meta and Microsoft are making big cuts to their workforces while heavily investing in AI. Both companies recently announced plans to lay off thousands of employees.
Meta shared that it will reduce its staff by around 10%, which is nearly 8,000 jobs. They’re also shutting down about 6,000 open positions to improve efficiency. On the same day, Microsoft offered voluntary retirement to about 7% of its U.S. workforce, which is around 8,750 employees.
In a memo to Meta employees, Janelle Gale, the Chief People Officer, mentioned that these layoffs are necessary to fund their other investments. Meta’s CEO, Mark Zuckerberg, has previously stated that AI is changing the way they work. He claimed that tasks that once needed large teams can now often be handled by just one skilled person. In fact, he predicted that within a year, AI could be responsible for half of the company’s software development.
Microsoft’s strategy also revolves around AI. The company plans to invest $100 billion in AI infrastructure in the upcoming fiscal year. Some analysts believe that figure could climb as high as $120 billion. Mustafa Suleyman, Microsoft’s AI chief, has said that he believes AI could replace much of white-collar work within the next year and a half.
The trend of layoffs in the tech industry is not limited to these two giants. Other companies are following suit. For instance, Amazon recently laid off at least 30,000 workers while planning to invest $200 billion in AI. Similarly, Oracle, which has struggled financially, indicated that it would cut thousands of jobs as it tries to modernize with AI.
Employee reactions reveal a growing concern about job security. Many workers fear that their roles will be taken over by AI. This worry is not unfounded. Reports have shown that companies like Meta are turning employees into data for AI training. An internal memo at Meta revealed plans to monitor employee keystrokes and mouse movements for this purpose.
This shift towards AI and the simultaneous layoffs highlight a significant change in the tech landscape. Just a few years ago, tech jobs were seen as secure and stable. Now, many workers find themselves facing uncertainty as their companies invest more heavily in AI technology.
For more on how AI is affecting corporate culture and job security, you can check out The Guardian’s detailed report on tech layoffs and AI.
