New Delhi, April 24: Major technology companies like Meta and Microsoft are preparing to reduce thousands of IT jobs due to significant investments in artificial intelligence (AI). This information has emerged from various reports.
Meta has informed its employees through an internal memo that the company plans to cut approximately 10% of its workforce, equating to around 8,000 jobs, starting May 20.
Under the leadership of Mark Zuckerberg, the company has also decided not to fill about 6,000 vacant positions as part of its extensive restructuring campaign.
Meanwhile, Microsoft has offered voluntary retirement to a portion of its U.S. employees. Reports indicate that around 7% of employees in the U.S. are eligible for this program, potentially affecting about 8,750 employees based on the current workforce.
This restructuring comes at a time when both companies are increasing their spending on AI infrastructure, including data centers and related technologies.
Additionally, Microsoft is expanding its global data center network and has recently announced AI-related investments in markets like Japan and Australia.
Similarly, Meta has projected record capital expenditures this year and has made several billion-dollar deals with AI partners in recent months.
Both companies have undertaken multiple rounds of layoffs over the past two years as they adjust their cost structures in line with rising investments in AI.
In the internal memo released by Chief Human Resources Officer Jenelle Gale, this move is linked to efficiency measures and investment balancing. She stated, “We are doing this as part of our ongoing efforts to run the company more efficiently and to offset our other investments.”
Microsoft’s Chief Human Resources Officer Amy Coleman mentioned in a memo to employees that the company is taking swift actions to adapt to changing priorities.
She noted, “To maintain this pace, we must focus on delivering excellent work, trusting and empowering our managers, and simplifying processes to support everyone.”
Both Meta and Microsoft are set to release their quarterly earnings reports at the end of April.
In the meantime, another report indicates that KPMG is reducing approximately 10% of its audit partner positions in the U.S. as part of its long-term efforts to encourage voluntary early retirement.
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My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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