"Meta's chief people officer, Janelle Gale, stated that the layoffs were part of a continued effort to run the company more efficiently and to offset other investments. The investments are substantial, with Meta guiding capital expenditure of $115 billion to $135 billion for 2026, nearly double the previous year's spending."
"Both Meta and Microsoft are experiencing record revenues while simultaneously making significant cuts to their workforce. The layoffs are indicative of a shift in strategy, focusing on AI infrastructure rather than maintaining large human payrolls."
Meta and Microsoft announced simultaneous workforce reductions on April 23, totaling up to 23,000 positions. Meta will cut 8,000 jobs and cancel 6,000 open roles, while Microsoft offers voluntary retirement to 8,750 employees. Both companies reported record revenues and are significantly increasing investments in AI infrastructure. The layoffs are not due to financial distress but are aimed at reallocating funds from human payroll to AI capital expenditures, reflecting a broader trend in the tech industry.
Read at TNW | Meta
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