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By Hugh Cameron
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Major technology conglomerates continue to announce significant head count reductions in 2026, as the sector pivots toward artificial intelligence adoption and firms compete in their own capital-intensive arms race.
On Thursday, Meta announced in a companywide memo that it would be cutting 8,000 jobs, equivalent to about 10 percent of its overall workforce. In addition, the memo, viewed by The Wall Street Journal and Bloomberg, said the 6,000 open positions for which Meta was hiring would no longer be available, and that these measures were needed to ensure efficiency as the company scales up spending in other areas of the business.
When approached for comment, a Meta spokesperson confirmed the accuracy of the reports, and the decision was driven by efficiency considerations and the need to offset the company’s other investments.
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Also on Thursday, Microsoft offered buyouts to about 7 percent of its American workers, according to an internal memo obtained by CNBC and Bloomberg, primarily focused on employees with longer tenure at the company.
Economist Desmond Lachman, senior fellow at the American Enterprise Institute, said the two announcements served as “yet further confirmation that artificial intelligence is now beginning to cause significant layoffs, especially for entry-level white-collar workers.”
“The real question is not whether AI will disrupt the labor market but rather at what pace this will occur,” he told Newsweek.
Newsweek contacted Microsoft for comment via email.
Why It Matters
The two developments add to the broader pattern of workforce cuts that have swept the tech sector in recent years. In the announcements, companies often cite a focus on efficiency and the need to overhaul organizational structures and increase AI spending to keep pace with rapid industry shifts.
According to the outplacement firm Challenger, Gray & Christmas, tech led in private-sector layoffs last year with a total of 154,445 announcements—up 15 percent from the previous year, largely due to tech "pivoting to both developing and implementing artificial intelligence much more quickly than any other industry." The trend shows no signs of abating. The firm found that, by the end of March, 52,050 announced job cuts marked a 40 percent increase from 2025.
Which Tech Companies Are Laying Off Workers
Meta
According to The Wall Street Journal, Thursday's memo was sent by Chief People Officer Janelle Gale, who said the layoffs were required to drive efficiencies and help offset the company's other investments. In January, Meta said it expected 2026 capital expenditures to soar by up to 87 percent to as high as $135 billion compared to 2025 because of increased investments in AI infrastructure to support its "superintelligence" lab.
Microsoft
According to CNBC, Microsoft's buyout offer—the first of its kind for the company—will be open to employees at the level of senior director and below whose age and tenure at the company total 70 or more. Details regarding the size of the buyout have not been disclosed, but in a memo viewed by the outlet, Executive Vice President Amy Coleman said those who accept will receive "generous company support."
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Amazon
In January, the e-commerce giant announced that it would be cutting about 16,000 roles across the company, following on from the October announcement that it had cut 14,000 corporate roles in an effort to "strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy."
Like Meta, Amazon's strategic shift comes amid expanding investments in AI. On Monday, the company said it had agreed to invest up to $25 billion in Anthropic, in addition to the $8 billion already invested, as part of a joint effort to swiftly build out AI capacity.
Oracle
In late March, Oracle sent an early morning email to thousands of employees informing them that their jobs had been eliminated with immediate effect as part of a "broader organizational change" and after "careful consideration of Oracle's current business needs."
Oracle did not publicly comment on the layoffs, which came after a stellar earnings report, but reports suggest the number of affected roles ranges from 10,000 to 30,000.
Block
In February, the parent company of Square, Cash App and Tidal said it would be cutting almost half of its workforce, or over 4,000 jobs. CEO Jack Dorsey said this was due largely to the new capabilities offered by AI and the reduced need for human employees at the tech firm.
"We're already seeing that the intelligence tools we're creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company. And that's accelerating rapidly," he posted on X. Dorsey added that immediately cutting the jobs was preferable to gradual layoffs that would be "destructive to morale."
Salesforce
Following several rounds of AI-linked layoffs in the past few years, the California-based software firm quietly laid off fewer than 1,000 employees in early February, according to a report from Business Insider. According to those who spoke with the outlet, and LinkedIn posts from several affected employees, the cuts affected roles in marketing, product management, data analytics and other areas of the company.
Snap Inc.
In mid-April, the parent company of Snapchat sent out a memo to staff announcing that about 16 percent of its employees—roughly 1,000 people—would be laid off, as the firm also removed advertisements for over 300 open positions.
Snap Inc. cited developments in AI as the reason behind the cuts, saying that "rapid advancements" in the technology "enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers." The company said the move would help trim its projected yearly expenses by over $500 million by the second half of 2026.
What Happens Next
CNBC reported that eligible Microsoft employees would receive further details about the buyout offer on May 7.
Lachman told Newsweek that "all indications" suggest the AI revolution is occurring far faster than other periods of technological upheaval, meaning the "disruptions to the labor market could be significant over the next few years."
Update 4/24/26, 9:25 a.m. ET: This article was updated with commentary from Lachman.
Update 4/24/26, 10:41 a.m. ET: This article was updated with a response from Meta.
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