Meta to Implement Layoffs Amid Microsofts Buyout Offer

Meta Announces Layoffs of Approximately 8,000 Employees

Meta has announced that it will be laying off around 8,000 employees, representing about 10% of its workforce. The company cited efficiency and investment in new areas as the reasons for the cuts.

The layoffs are part of a broader trend in the tech industry, with Microsoft also offering buyouts to approximately 8,750 US employees. This move is seen as an alternative to sudden layoffs, but the savings are likely tied to increased spending on artificial intelligence infrastructure.

Meta has warned investors that its expenses will grow significantly in 2026, driven by infrastructure costs and employee compensation for AI experts. The company has also invested $1 billion in a new data centre in Tulsa, Oklahoma, as part of its expansion plans.

Microsoft’s voluntary buyout plan aims to support eligible employees in making a transition on their own terms. The company has spent billions of dollars on operating its global network of data centres and expanding its cloud computing services.

The news has affected the stock prices of both companies, with Meta’s stock falling 2.3% and Microsoft’s stock ending the day down 3.97%.

Source: Al Jazeera