job cut in IT
The world’s two biggest tech companies, Meta Platforms and Microsoft, are preparing for a major change, which may impact thousands of employees. With increasing spending on Artificial Intelligence (AI) and making operations more efficient, both companies are taking steps towards reducing costs. According to reports, around 23,000 jobs may be affected by these decisions. While on one hand Meta is planning large scale layoffs, on the other hand Microsoft is offering voluntary buyout to its employees.
Once again the sound of layoffs is being heard in the tech sector. Meta Platforms and Microsoft have started taking major decisions to control their expenses and balance the heavy investment on AI.
8 thousand people will lose their jobs in Meta
Meta has said in an internal memo sent to its employees that the company will lay off about 10% of the workforce, i.e. about 8,000 employees. This process will start from May 20. Additionally, the company will also not fill around 6,000 vacant positions, which may further increase the overall impact. Meta says that this step is being taken to make the company more effective and agile.
buyout move
On the other hand, Microsoft has launched a large-scale voluntary buyout program for its American employees. According to the report, out of approximately 1.25 lakh employees of the company in America, about 7% i.e. 8,750 people may be eligible for this offer. This is believed to be the biggest such buyout move in the history of Microsoft.
In fact, both the companies are investing heavily amid the increasing pressure of Artificial Intelligence. Microsoft is building new data centers around the world and has announced major AI investments in Japan and Australia. Meta is also planning record capital expenditure this year and has made deals worth billions of dollars with AI partners. Experts believe that tech companies are now focusing on achieving more efficiency at lower cost. In such a situation, more layoffs may be seen in the tech sector in the coming time.
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