Latest Wave of Layoffs Hits the "Giants" Too
Jakarta, CNBC Indonesia - The wave of layoffs in the global technology industry is heating up again after Meta and Microsoft announced potential cuts of more than 20,000 jobs on Thursday. This drastic step has triggered deep concerns among economic experts that the labour crisis due to artificial intelligence (AI) is no longer a future threat, but a bitter reality today.
This phenomenon is an irony because these giant companies are collectively pouring hundreds of billions of US dollars into building AI infrastructure. Citing CNBC International, this move is part of a massive efficiency effort where companies are trying to replace human roles with technology while making adjustments after over-hiring during the pandemic.
Permanent Structural Shift
Experts see this trend not as a mere market correction, but as a fundamental transformation in work organisation across various industries. Anthony Tuggle, an executive coach and leadership expert who previously worked in the AI world, shared his views on the situation.
“This represents a fundamental structural shift rather than a temporary market correction. We are witnessing the beginning of a permanent transformation in how work is organised and executed across industries,” Tuggle said in his analysis, quoted on Monday (27/4/2026).
Based on data from Layoffs.fyi, more than 92,000 tech workers have been affected by layoffs throughout 2026 up to this week. This figure adds to the cumulative total of workers who have lost their jobs, reaching nearly 900,000 since 2020. Anxiety over job security continues to rise since the emergence of ChatGPT and other AI tools capable of efficiently handling entire business divisions.
Details of Meta and Microsoft Cuts
Meta specifically signalled efficiency in an internal memo sent to its employees. The company founded by Mark Zuckerberg plans to cut 10% of its workforce, equivalent to 8,000 positions, starting on 20 May. In addition, Meta is cancelling plans to fill 6,000 vacant positions.
“This is all part of our ongoing efforts to run the company more efficiently and enable us to keep pace with other investments we are making,” Meta wrote in the memo.
At almost the same time, Microsoft confirmed an unprecedented move in its 51-year history by offering a voluntary redundancy programme (voluntary buyout). Around 7% of employees in the United States, or about 8,750 people, are eligible for this programme to reduce operational costs.
Rajat Bhageria, CEO of physical AI startup Chef Robotics, stated that although AI is likely to create new jobs in the future, the form of those jobs remains a big question mark.
“We are just beginning to understand how much of our daily work can be handled by AI across different types of jobs,” Bhageria revealed.
Financial Efficiency and Massive AI Funds
These staff reduction moves are predicted to have a significant impact on company cash flow. Analysts from TD Cowen in their notes mentioned that eliminating 20,000 to 30,000 jobs could generate additional free cash flow of US$8 billion to US$10 billion (approximately Rp138 trillion to Rp172.5 trillion) for companies like Oracle.
Despite cutting thousands of people, tech companies’ spending remains unchecked. Alphabet, Microsoft, Meta, and Amazon are estimated to spend a combined nearly US$700 billion (approximately Rp12,077 trillion) this year just to build AI infrastructure.
On the other hand, Glassdoor’s Chief Economist, Daniel Zhao, noted that fewer people are daring to resign voluntarily due to fears of an unstable job market. This dynamic is making companies take more aggressive steps.
“Because natural resignations are not happening much, companies are becoming more aggressive in pushing people out the door. Whether that means explicit layoffs or raising performance review standards, there are various actions taken by employers to cut labour costs,” Zhao explained.
This AI-based efficiency is also felt by Snap Inc., which cut 16% of its staff, or around 1,000 people. Snap CEO Evan Spiegel openly stated that AI-driven efficiency was the main reason in his letter to staff. The same sentiment was expressed by Salesforce CEO Marc Benioff, who cut 4,000 customer support roles because he felt his company needed fewer staff in operations.