New Delhi, April 24 (IANS). Giant technology companies like Meta and Microsoft are preparing to reduce thousands of IT jobs due to heavy investment in Artificial Intelligence (AI). This information was given in many reports.
Meta told employees in its eternal memo that the company plans to cut about 10 percent of its total workforce, or 8,000 jobs, starting May 20.
The Mark Zuckerberg-led company has also decided not to fill around 6,000 vacancies as part of its massive restructuring drive.
On the other hand, Microsoft has also proposed voluntary retirement to a part of its American employees.
According to reports, about 7 percent of employees in the US are eligible for this program, which could impact around 8,750 employees based on the current headcount.
The restructuring comes at a time when both companies are increasing spending on AI infrastructure, including data centers and related technologies.
Additionally, Microsoft is expanding its global data center network, and recently announced AI-related investments in markets such as Japan and Australia.
Similarly, Meta anticipates record capital spending this year and has struck multibillion-dollar deals with AI partners in recent months.
Additionally, both companies have laid off employees in multiple phases over the past two years as they adjust cost structures with increased investments in AI.
Meta’s internal memo, released by Chief Human Resources Officer Janelle Gale, linked the move to efficiency measures and investment balancing.
“We are doing this as part of our continuing efforts to run the company more efficiently and recoup our other investments,” he was quoted as saying.
Microsoft Chief Human Resources Officer Amy Coleman said in a memo sent to employees that the company is taking rapid steps to adapt to changing priorities.
“To maintain this momentum we need to focus on delivering great work, trusting and empowering our managers, and simplifying processes to support everyone,” he said.
Both Meta and Microsoft are scheduled to release their quarterly earnings reports in late April.
Meanwhile, another report said KPMG is cutting its audit partner positions in the US by about 10 percent as part of its long-term effort to encourage voluntary early retirement.
–IANS
abs/
