New Delhi: A fresh wave of job cuts is set to hit the global technology sector, with Meta Platforms and Microsoft planning layoffs and buyouts that could affect nearly 23,000 employees. The move reflects a broader industry shift towards cost optimisation and increased investment in artificial intelligence (AI).
Tech giants restructure amid AI push
The latest developments signal a significant restructuring phase across major technology companies as they prioritise spending on AI infrastructure and automation. Both Meta and Microsoft are recalibrating their workforce strategies to align with long-term technological goals.
Meta, led by CEO Mark Zuckerberg, is expected to undertake one of its largest restructuring exercises in recent years. The company has been aggressively investing in AI capabilities, including generative tools and large-scale machine learning systems.
At the end of 2025, Meta reportedly had over 78,000 employees. The company has indicated plans to spend between $115 billion and $135 billion in 2026, nearly doubling its expenditure from the previous year. This surge in investment has necessitated cost-cutting measures, including workforce reductions.
Meta’s Chief People Officer, Janelle Gale, acknowledged the difficulty of the decision, stating that the layoffs are part of efforts to run the company more efficiently while supporting heavy investments in future technologies.
Microsoft announces large-scale buyouts
Meanwhile, Microsoft has introduced a large-scale voluntary buyout programme, marking one of the first initiatives of its kind at this scale within the company.
The buyouts will primarily target employees in the United States, where Microsoft had around 1.25 lakh employees as of June 2025. Reports indicate that approximately 7% of its US workforce — around 8,750 employees — could be eligible for the programme.
The eligibility criteria include employees at the senior director level and below, as well as those whose age and years of service combined total 70 or more.
CEO Satya Nadella stated that the company will offer severance packages along with six months of healthcare benefits, stock vesting, and a 60-day notice period. For instance, a long-serving employee with a salary of $180,000 could receive a comparable severance payout, potentially higher depending on seniority.
Rising layoffs across the tech sector
The layoffs at Meta and Microsoft are part of a broader trend impacting the global tech industry. According to data from Layoffs.fyi, over 73,000 employees have already lost their jobs worldwide in 2026.
Companies are increasingly focusing on leaner operations as they channel resources into AI development, cloud infrastructure, and data centre expansion. Microsoft, for instance, is reportedly ramping up investments in data centres to meet growing demand for AI-driven services.
Balancing growth and workforce impact
While these measures are aimed at ensuring long-term growth and competitiveness, they come at the cost of significant job losses. Industry experts note that the transition towards automation and AI is reshaping job roles, often reducing the need for certain functions while creating demand for new skill sets.
The challenge for companies lies in balancing innovation with workforce stability, particularly as employees face uncertainty amid rapid technological change.
Conclusion
The potential impact of nearly 23,000 job cuts underscores the scale of transformation underway in the tech industry. As companies like Meta Platforms and Microsoft double down on AI investments, workforce restructuring is becoming an inevitable part of the transition.
The coming months are likely to see further shifts in hiring and employment patterns, as the sector adapts to an increasingly AI-driven future.
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