Meta is laying off about 8,000 workers, or about 10 per cent of its workforce, the company said Thursday as it continues to ramp up spending on artificial intelligence infrastructure and highly paid AI-expert hires.

The company said it was making the cuts for the sake of efficiency and to allow new investments in parts of its business, as first reported by Bloomberg, which also said the company will leave about 6,000 jobs unfilled.

While an alternative to the sudden layoffs removing tech workers from peers like Meta and Oracle, the savings are likely tied to a similar industry upheaval that is requiring huge spending on the costs of artificial intelligence. Meta has already warned investors that its 2026 expenses will grow significantly — to the range of $162 billion US to $169 billion US — driven by infrastructure costs and employee compensation, particularly for the artificial intelligence experts it’s been hiring at eye-popping pay levels.

Wedbush analyst Dan Ives welcomed Meta’s cuts in a note to investors Thursday. He said he sees it as part of a strategy of using AI tools to “automate tasks that once required large teams, allowing the company to streamline operations and reduce costs while maintaining productivity driving an increased need for a leaner operating structure.”

It’s not clear where the job reductions will occur. Meta has Canadian offices in Vancouver, Toronto and Montreal.

7% of Microsoft workforce could get offers

Also Thursday, Microsoft said it was offering voluntary buyouts to thousands of its U.S. employees. The software giant plans to make the offers in early May to about 8,750 people, or seven per cent of its U.S. workforce, according to two people familiar with the plan who were not authorized to speak about it publicly.

Microsoft, based in Redmond, Wash., has spent billions of dollars operating an ever-expanding global network of data centres powering cloud computing services, AI systems and its own suite of productivity tools, including the AI assistant Copilot.

WATCH | Microsoft favours carbon-free energy investment:

Microsoft pledges $19B AI investment in Canada

While Microsoft says it is investing in Canada’s AI future, concerns about the country’s digital sovereignty are growing amid a trade war with the U.S. Power & Politics hears from Microsoft president Brad Smith.

CNBC reported earlier Thursday on a memo from Microsoft’s chief people officer, Amy Coleman, announcing the voluntary retirement plan.

“Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” Coleman wrote, according to CNBC, which chararterized the buyouts as the first in the company’s 51-year history.