20,000 Meta and Microsoft Employees Laid Off, AI Blamed as the Culprit

A fresh wave of redundancies is shaking the global technology industry. Two tech giants, Meta Platforms and Microsoft, are reportedly cutting more than 20,000 jobs amid accelerated massive investments in artificial intelligence (AI). This situation raises concerns that AI’s impact on the workforce is no longer a future threat but is happening now. This is because major companies are implementing workforce efficiencies at the same time as increasing spending on AI infrastructure. Meta is said to be cutting around 10% of its workforce, while Microsoft is launching a voluntary redundancy programme for the first time in the company’s history. This policy marks a major change in workforce strategy in the global technology sector. According to analysts, the changes occurring are not merely short-term business adjustments but a structural shift. “This is a fundamental structural shift, not a temporary market correction,” said Anthony Tuggle, executive coach and leadership expert, as quoted from CNBC on Monday, 27 April 2026. He assesses that the industry is entering a new phase where AI is beginning to fundamentally change the way work is done, not just assisting human work but also replacing some existing roles. Pressure in the technology labour market is also becoming increasingly apparent. This week, more than 92,000 tech workers have been laid off throughout 2026, according to Layoffs.fyi, bringing the total close to 900,000 since 2020. This surge in redundancies is occurring amid accelerated AI adoption in various major companies. This technology is used to improve efficiency, automate work processes, and reduce the need for human labour in some sectors. The impact is not only felt in pure technology companies. Other global companies like Nike are also reducing their workforce, particularly in technology-based divisions and digital operations. This situation is heightening concerns in the labour market. Many workers are choosing to stay in their positions for fear of difficulty finding new jobs amid industry uncertainty. “Because natural resignations are not happening as much as before, companies are becoming more aggressive in pushing people out,” said Daniel Zhao, Glassdoor’s chief economist.