US technology giants Meta and Microsoft are set to lay off around 16,000 employees to manage rising expenses linked to their expanding artificial intelligence (AI) investments, according to a Financial Times report. Meta, the parent company of Facebook, plans to cut about 10 percent of its workforce, or roughly 8,000 employees, and cancel around 6,000 vacant positions. An internal memo indicated that the layoffs will begin on May 20.

Meta is investing heavily in AI infrastructure, including new data centers and recruitment of top-tier technology experts, to compete with rivals such as Google and OpenAI. The company previously stated that its 2026 capital expenditure could reach between 115 and 135 billion dollars, with a large portion allocated to AI infrastructure and operational costs.

Microsoft, meanwhile, is offering voluntary retirement to about 7 percent of its US-based workforce, affecting more than 8,000 employees who meet specific age and service criteria. The company had already cut over 15,000 jobs in 2025 while pledging 140 billion dollars to accelerate AI development.