Meta is laying off about 8,000 workers, or roughly 10% of its workforce, as the company ramps up spending on artificial intelligence infrastructure and hires highly paid AI experts. The cuts were announced Thursday, with the company citing efficiency and the need to invest in new business areas.

According to Bloomberg, Meta will also leave about 6,000 positions unfilled. The layoffs come amid rising costs: Meta has warned investors that its 2026 expenses will grow to between $162 billion and $169 billion, driven by infrastructure and employee compensation, particularly for AI talent.

This week, Meta broke ground on an AI-optimized data center in Tulsa, Oklahoma, a $1 billion investment and its 28th data center in the US.

On the same day, Microsoft announced it would offer voluntary buyouts to thousands of US employees. The offers will be made in early May to about 8,750 people, or 7% of its US workforce, according to sources familiar with the plan.

Microsoft has spent billions on expanding its global network of data centers to power cloud computing, AI systems, and its AI assistant Copilot. The voluntary buyouts are seen as a cost-saving measure amid similar industry upheaval.

Wedbush analyst Dan Ives welcomed Meta's cuts, viewing them as part of a strategy to use AI tools to automate tasks and streamline operations, reducing costs while maintaining productivity.

Meta's stock fell 2.3% on Thursday, while Microsoft's stock ended the day down 3.97%.

Source: www.aljazeera.com