Story perspectives

Meta, Microsoft Slash Jobs, Stocks Drop Amid AI Spending

4/28/2026

Summary

Story summary

Meta will cut 8,000 jobs (10% of its workforce) and stop hiring 6,000 roles on May 20.
Microsoft will offer voluntary early-retirement to roughly 8,750 U.S. employees, about 7% of its staff.
After the announcements, Meta shares fell 2.3% and Microsoft stock dropped 4%, leaving both down about 10% in six months and lagging the S&P 500.
Meta announced AI-related capital spending of $115-$135 billion while Microsoft has spent $88 billion on AI infrastructure.

History

Historical Context

In 2015, Microsoft, led by CEO Satya Nadella, announced a 7,800-person workforce reduction after its $7.2 billion Nokia acquisition, signaling a strategic pivot. The cut represented roughly 12% of its hardware division, and the company projected $1 billion in annual cost savings. Similarly, today Meta and Microsoft each announce layoffs of thousands while earmarking over $115 billion and $88 billion respectively for AI investments, echoing the earlier shift from hardware to software focus. These patterns suggest that large tech firms, reflected in the S&P 500’s shifting composition, repeatedly restructure labor forces to fund emerging technologies, foreshadowing further consolidation in the AI era.

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Story summary

Meta will cut 8,000 jobs (10% of its workforce) and stop hiring 6,000 roles on May 20.
Microsoft will offer voluntary early-retirement to roughly 8,750 U.S. employees, about 7% of its staff.
After the announcements, Meta shares fell 2.3% and Microsoft stock dropped 4%, leaving both down about 10% in six months and lagging the S&P 500.
Meta announced AI-related capital spending of $115-$135 billion while Microsoft has spent $88 billion on AI infrastructure.

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