The company indicated that the layoffs are aimed at boosting efficiency and facilitating new investments within different sectors of its operations, as first reported by Bloomberg, which also noted that around 6,000 positions will remain unfilled.
On the same day, Microsoft revealed that it would be offering voluntary buyouts to thousands of its employees in the U.S.
The technology giant intends to extend these offers in early May to roughly 8,750 individuals, or about 7% of its U.S. workforce, according to two sources familiar with the initiative who wished to remain unnamed.
This approach serves as an alternative to the abrupt layoffs affecting tech employees from companies like Meta and Oracle, with the resulting savings likely linked to a similar upheaval in the industry that necessitates significant investment in artificial intelligence costs.
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Meta has previously cautioned investors that its expenses for 2026 are projected to rise dramatically — reaching between $162 billion and $169 billion — primarily due to infrastructure expenses and compensation for the artificial intelligence experts it has been hiring at extraordinary salary levels.
Wedbush analyst Dan Ives expressed approval of Meta’s layoffs in a message to investors on Thursday.
He perceives this as part of a strategy to utilize AI tools to “automate tasks that once required large teams, enabling the company to optimize operations and cut costs while sustaining productivity, thereby creating a heightened demand for a more efficient operating structure.”
Based in Redmond, Washington, Microsoft has invested billions into managing a continually expanding global network of data centers that support cloud computing services, AI systems, and its own suite of productivity applications, including the AI assistant Copilot.
CNBC earlier reported on a memo from Microsoft’s chief people officer, Amy Coleman, detailing the voluntary retirement scheme.
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“We hope this program allows eligible employees the opportunity to make this choice on their own terms, with substantial support from the company,” Coleman stated, according to CNBC.
