Meta and Microsoft to Eliminate 20,000 Jobs! AI Emerges as a Major Factor

Companies like Meta and Microsoft are poised to carry out over 20,000 new layoffs. Tech firms are continuously ramping up their investments in AI while simultaneously downsizing their workforces. These layoffs are expected to take place this very week. The list of companies involved in this trend extends beyond just Meta and Microsoft to include Amazon and Alphabet. It is estimated that these renowned companies will collectively invest $700 billion this year in developing AI infrastructure. The increasing adoption of AI is reducing the need for manual labor, thereby driving down the demand for manpower.

More than 20,000 employees could be laid off by Meta and Microsoft this week. According to a CNBC report, driven by massive investments in AI, these companies are pursuing cost-cutting measures on one hand, while on the other, the demand for human labor is steadily declining due to automation. This is having a direct impact on employment. Many companies are also leveraging AI tools to enhance their operational efficiency. Furthermore, companies are now working to right-size their workforces following the excessive hiring spree that took place in the wake of the pandemic.

Since the beginning of 2020, approximately 92,000 people in the tech sector have lost their jobs. Citing data from Layoffs.fyi, reports indicate that a total of 900,000 jobs have been eliminated between 2020 and 2026. Meta has announced plans to reduce its workforce by 10 percent; the company has disclosed a specific plan to lay off 8,000 employees as part of this initiative. Additionally, the company has frozen hiring for 6,000 open positions. Microsoft appears to be following a similar path.

Nike has announced layoffs affecting approximately 1,400 employees, many of whom are associated with the company’s technology department. Snap recently cut its workforce by 16 percent, while Salesforce had previously eliminated 4,000 customer support positions. Oracle, too, recently announced job cuts affecting thousands of employees as it increases its spending on AI initiatives. Citing an industry study, CNBC reported that hiring for entry-level and general IT positions is slowing down, while demand for AI engineers and specialized roles remains strong. Overall, AI is having a widespread impact on jobs.