First CNBC reports MSFT'sfirst-ever Voluntary Buyout in 51-Year Company History,
Then a report by BBG on Meta planning10% Workforce Cut, All Within Hours
To note: Reuters First reported Meta's 10% cut late last week (report)
First, Microsoft unveiled a voluntary buyout program, a move that could incentivize thousands of employees to leave.
Now, Meta Platforms has reportedly followed with plans to cut 10% of its workforce. Taken together, today's back-to-back announcements suggest that as Big Tech continues to spend aggressively on AI infrastructure and data center buildouts, management teams are trimming excess fat to reallocate capital toward the AI race.
Bloomberg reports that Meta plans to reduce its workforce by 10%, or roughly 8,000 employees, and leave 6,000 open roles unfilled. The layoffs are expected to occur on May 20.
Meta had nearly 79,000 employees at the end of last year, according to Bloomberg data.
The outlet cited an internal memo written by Janelle Gale, chief people officer, in which she said,"We're doing this as part of our continued effort to run the company more efficiently and to allow us to offset other investments we're making."
Meta shares are flat on the year but in-line in seasonal trends.
"I know this is unwelcome news, and confirming it puts everyone in an uneasy state, but we feel this is the best path forward, given the circumstances," Gale wrote.
Source: ZeroHedge News
