More than 16,000 workers are set to lose their jobs at Meta and Microsoft as both companies ramp up spending on artificial intelligence and continue cost-cutting measures.
According to CNBC, Meta, the parent company of Instagram and WhatsApp, said it would lay off about 8,000 employees, representing around 10 per cent of its workforce, as it seeks efficiency savings while increasing investment in AI.
The company also said about 6,000 vacant positions would remain unfilled.
Meta had earlier told investors that its spending would top $160 billion during 2026, up from just under $120 billion last year.
The social media giant is competing with rivals to hire AI experts while also facing huge costs for data centres needed to power the technology.
Microsoft, meanwhile, said it was offering a voluntary redundancy programme that the Associated Press reported would affect about 8,750 workers within its core United States workforce.
That figure represents about 7 per cent of the company’s total staff.
CNBC had earlier reported that the scheme would be rolled out early next month.
The broadcaster said workers were informed in a memo from Microsoft chief people officer Amy Coleman.
“Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” she wrote.
The latest announcements continue a wave of job cuts across major US technology firms as investment in artificial intelligence accelerates.