Meta (META) on Thursday became the latest Big Tech company to announce layoffs as the ballooning costs of the AI build-out and efficiencies continue to hit workers in the industry.
The company says it will cut 10% of its workforce, or about 8,000 employees.
The news comes after a trickle of reports suggested the company was planning a sweeping wave of job cuts this spring.
Microsoft (MSFT) will also offer voluntary buyouts to some employees as the company joins many of its Big Tech peers in seeking ways to control costs amid their AI spending sprees.
According to a source familiar with the matter, roughly 7% of Microsoft’s US employees, senior directors or below, can take part in the buyouts if their years at the company plus their age add up to at least 70.
This program will mark a first for Microsoft, which also laid off thousands of workers in 2025. Microsoft’s peers have made similar moves over the last year. Amazon (AMZN), Google (GOOG, GOOGL), Meta, and Oracle (ORCL) have also laid off employees at various points.
All four companies are also spending billions to construct data centers and develop AI models. Amazon, Google, Meta, and Microsoft alone will spend some $650 billion on capital expenditures in 2026.
The layoffs also follow years of job cuts at tech companies after they dramatically expanded their workforces during the pandemic.
Microsoft stock, which fell about 4% on Thursday, is down about 15% this year, a laggard among the “Magnificent Seven” tech leaders. Meta stock is roughly flat this year.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley.
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