Tech layoffs loom: Meta cuts, Microsoft buyouts put 23,000 jobs at risk

A wave of layoffs in the information technology sector is set to unfold as Meta Platforms and Microsoft plan job cuts or announce buyouts that could affect as many as 23,000 employees. The move is part of an effort to streamline operations and offset heavy spending on artificial intelligence (AI).

Meta plans to cut 10 per cent of its workforce, roughly 8,000 employees, starting May 20. Meanwhile, Microsoft has issued a memo offering voluntary buyouts to thousands of its US-based employees. About 7 per cent of its US workforce will be eligible for the programme.

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Notably, Microsoft has never previously undertaken buyouts on this scale. The company had around 125,000 employees in the US as of June 2025, which means approximately 8,750 workers could be eligible for the scheme.

A key reason behind the layoffs is Meta’s increased spending in other areas, particularly AI, on which it is expected to spend $135 billion this year, roughly equal to its total AI investment over the previous three years combined.

Meta Chief Executive Officer Mark Zuckerberg has, over the past year, repeatedly emphasised the company’s ambition to become a leader in artificial intelligence, spanning generative tools and infrastructure that powers large-scale machine learning systems.

Janelle Gale, Meta’s Chief People Officer, said: “We’re doing this as part of our continued effort to run the company more efficiently and to offset the other investments we’re making. This is not an easy trade-off, and it will mean letting go of people who have made meaningful contributions to Meta during their time here.”

On the buyout plan, Microsoft CEO Satya Nadella said the company would offer benefit-eligible employees six months of healthcare, stock vesting, and 60 days’ notice in addition to severance. For instance, a 20-year employee earning $180,000 annually could receive a severance package of $180,000, though it is likely to be higher for senior-level employees.

A slowdown in IT hiring and ongoing layoffs are beginning to weigh on India’s housing market, particularly in technology-driven cities such as Hyderabad, Pune, and Bengaluru, where software professionals account for a significant share of homebuyers.