Massive Layoffs to Bet on AI! Microsoft Launches First Voluntary Retirement Program in 51 Years, Meta Lays Off 8,000 Employees

Major technology companies are accelerating the restructuring of their workforce. Microsoft and Meta have both announced significant layoff plans within hours of each other. Meta stated that the layoffs are a necessary measure to improve operational efficiency and reallocate capital amid continued expansion of AI expenditures.

According to media reports, Microsoft has launched its first voluntary retirement program in its 51-year history, targeting employees at Senior Director level and below, with the criteria being a combined age and years of service reaching 70 or above. This program could affect about 7% of Microsoft’s U.S. employees, and given its U.S. headcount of approximately 126,000, the potential number of departures could reach 9,000.

Meanwhile, Meta plans to cut about 10% of its workforce on May 20, involving around 8,000 employees, and 6,000 open positions will remain unfilled. As of the end of last year, Meta had about 79,000 employees worldwide.

The stock prices of both companies have come under pressure. By early April, Microsoft's shares had posted their worst performance for the same period since Bloomberg data going back to 1997, while Meta’s stock has remained flat this year.

This personnel adjustment is a continuation of Microsoft's recent tightening measures. At the end of March, the company had already implemented a hiring freeze for some positions in the cloud computing and sales departments. This voluntary retirement plan is the first of its kind in Microsoft’s 51-year documented history.

According to an internal memo cited by CNBC, the plan is described as a "one-time retirement project." Amy Coleman, Microsoft's Executive Vice President and Chief Human Resources Officer, wrote in the memo: "We want this program to give eligible employees the opportunity to take their next step at their own pace, with generous support from the company."

According to Microsoft’s 2025 annual report, the company’s global workforce totals about 228,000 employees, with approximately 126,000 in the U.S. If the voluntary retirement plan affects around 7% of U.S. employees, the number of potential departures could exceed 9,000.

Although CNBC noted that the actual number of participants is expected to be "a small portion of employees," this figure still represents the company’s largest proactive workforce restructuring to date.

Alongside the workforce adjustment, Microsoft is also reforming its compensation structure. The company is splitting its equity incentives and cash bonuses into separate payouts and streamlining management performance evaluation options from nine tiers to five, in order to give managers greater flexibility and concentrate resources on rewarding core employees.

This round of layoffs at Meta is a planned structural adjustment. Meta Chief Human Resources Officer Janelle Gale stated in an internal memo:

"This is one of our ongoing efforts to improve operational efficiency and free up resources for other investments. I know this is not welcome news and that confirming this decision will make everyone uneasy, but we believe it is the best course of action in the current situation."

This round of layoffs will affect about 8,000 employees, while another 6,000 open positions will remain vacant, impacting in total around 18% of Meta’s current workforce. The layoffs are expected to be implemented on May 20.

The measures by Microsoft and Meta are not isolated incidents but share the same structural context: Faced with massive capital expenditure pressures for AI infrastructure and data center construction, technology companies are reducing labor costs to create more room for strategic investments.

Microsoft is currently undergoing an AI-driven cycle of heavy capital spending, with data center expansion being the main source of its financial pressure. Meta is also continuously increasing its investment in AI infrastructure. As revenue growth faces uncertainties, reducing workforce costs has become a direct means to balance capital allocation.

In addition, according to The Wall Street Journal earlier this week, the Gates Foundation is also planning to cut about 500 jobs, accounting for about 20% of its workforce.