Meta and Microsoft could impact up to 23,000 jobs through layoffs and buyouts as they streamline operations and prioritise AI investments.
Hiring momentum is slowing globally, with Indian IT firms also cutting headcount and reducing fresher intake amid macro uncertainty.
Companies are reallocating capital towards data centres and AI infrastructure, reshaping workforce demand and job roles across the tech sector.
AI Boom, Job Bust: Meta, Microsoft Eye 23,000 Cuts as Hiring Slows Across Tech
Layoffs, buyouts, and a hiring slowdown signal a structural shift in Big Tech as companies redirect spending towards AI infrastructure
Summary
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Meta Platforms Inc. and Microsoft Corp. are preparing layoffs and buyouts that could affect as many as 23,000 jobs, Bloomberg reported. The move is part of efforts to streamline operations and offset heavy spending on artificial intelligence.
According to the report, Meta said in an internal memo on Thursday that it plans to cut 10% of its workforce — or nearly 8,000 employees — beginning May 20. The company also said it will not fill around 6,000 open roles.
Microsoft, meanwhile, has issued its own memo offering voluntary buyouts to thousands of its US employees. Nearly 7% of its US workforce will be eligible, the report said, citing sources. This marks the first time Microsoft has announced buyouts on such a large scale, the sources added. As of June 2025, Microsoft had around 125,000 employees in the US, making roughly 8,750 workers eligible for the programme.
The buyout is being offered to employees whose age plus years of service total 70 or more, excluding certain senior roles and those on sales incentive plans, the report added.
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Broader Layoffs Across Tech
Tech and entertainment giants have been streamlining operations and laying off employees globally. Companies such as Amazon, Anthropic, and Disney have been cutting roles — particularly at the mid-management level — to reduce costs.
Firms are increasingly slashing expenses to redirect capital towards data centres and infrastructure needed to support the growing demand for AI and advanced technologies. Microsoft is reportedly building data centres worldwide, with new AI investments announced in Japan and Australia. Meta has also projected record-high capital expenditure this year, alongside several multi-billion-dollar deals with AI partners, the Bloomberg report said.
“We’re doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making,” Meta’s Chief People Officer wrote in a note reviewed by Bloomberg.
Indian IT Services Also Cut Headcount
Separately, Business Standard reported that India’s top five IT companies reduced their combined headcount by 6,981 in the last financial year — a sharp reversal from the previous year, when headcount rose by 12,718.
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According to the report, Tata Consultancy Services (TCS) saw the largest decline, laying off over 12,000 employees in July to cut costs amid rising AI investments. Tech Mahindra’s headcount fell by 1,108. However, HCLTech, Wipro, and Infosys reported net additions.
Reports also suggest that the current fiscal year may see a slower start to hiring, particularly for fresh graduates. TCS has guided for fresher hiring of around 25,000 for FY27, while Infosys said it plans to hire 20,000 freshers this year — lower than TCS’s typical intake of around 40,000 from engineering colleges.
Geopolitical tensions and broader macroeconomic volatility have also weighed on technology spending by clients, the report said. Wipro and HCLTech have indicated that hiring decisions will depend on business demand and deal flow, adding that it is difficult to provide firm hiring numbers amid uncertain and evolving conditions.