"Meta is laying off about 8,000 workers, or about 10 percent of its workforce, as it continues to ramp up spending on artificial intelligence infrastructure and highly paid AI-expert hires."
"Microsoft said it was offering voluntary buyouts to thousands of its US employees, planning to make the offers in early May to about 8,750 people, or 7 percent of its US workforce."
"Meta has already warned investors that its 2026 expenses will grow significantly to the range of $162bn to $169bn driven by infrastructure costs and employee compensation, particularly for the AI experts it has been hiring."
"Wedbush analyst Dan Ives welcomed Meta's cuts, seeing it as part of a strategy of using AI tools to automate tasks that once required large teams, allowing the company to streamline operations."
Meta is laying off 8,000 workers, about 10% of its workforce, to enhance efficiency and invest in AI. Microsoft is offering buyouts to 8,750 employees, approximately 7% of its US workforce. Both companies are responding to industry changes requiring significant AI spending. Meta's expenses are projected to rise significantly by 2026, driven by infrastructure and AI expert compensation. Analysts view these workforce reductions as a strategy to streamline operations and maintain productivity through AI automation.
Read at www.aljazeera.com
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