Meta, Microsoft purge jobs amid AI build-up

Meta and Microsoft cut thousands of jobs while pouring billions into artificial intelligence development. | Contesto: cronaca

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• Meta, Microsoft purge jobs amid AI build-up

Contesto

In a stark sign of the shifting priorities within Big Tech, Meta and Microsoft announced significant workforce reductions this week, even as both companies accelerate their massive investments in artificial intelligence. Meta, the parent company of Facebook, said it would cut 10 percent of its workforce, while Microsoft revealed plans for an early retirement scheme aimed at reducing headcount. The moves come at a time when both tech giants are channeling billions of dollars into AI infrastructure and research. Meta’s decision to slash one in ten jobs marks one of the largest workforce reductions in the company’s history. The layoffs are expected to affect thousands of employees across various divisions, though the company has not specified which teams will be hit hardest. The cuts follow a period of rapid hiring during the pandemic, when Meta expanded its workforce to nearly 87,000 employees. CEO Mark Zuckerberg has previously described 2023 as a “year of efficiency,” signaling a shift away from aggressive growth toward cost-cutting and operational discipline. Microsoft, meanwhile, is taking a different approach by offering an early retirement package to eligible employees. While the company has not disclosed the exact number of workers expected to take the offer, the scheme is part of a broader restructuring effort. Microsoft has also been trimming jobs in other areas, including its HoloLens division and customer service units. The early retirement option is seen as a way to reduce headcount without the stigma and legal risks associated with mass layoffs. The cuts come as both companies pour unprecedented resources into artificial intelligence. Meta has invested heavily in AI research and development, including the creation of large language models and AI-powered features for its social media platforms. Microsoft has deepened its partnership with OpenAI, the maker of ChatGPT, and has integrated AI into its Azure cloud services, Office products, and Bing search engine. These investments have become central to both companies’ long-term strategies, as they compete to lead the AI race. The juxtaposition of job cuts and AI investment raises questions about the...

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Categoria: cronaca