Apr 26, 2026
Thursday, Apr. 23 saw three major companies making substantial cuts to their payroll as they look to streamline operations and, in some cases, rely more heavily on artificial intelligence.
Meta, in an internal memo, said it would lay off 10% of its staff, which equates to roughly 8,000 people (1). The savings from those cuts will be funneled into the company's AI investment. "This is not an easy tradeoff and it will mean letting go of people who have made meaningful contributions to Meta during their time here," wrote Meta Chief People Officer Janelle Gale.
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Meta also said it is canceling plans to hire for 6,000 open roles. Employees won't know if they're impacted by these cuts until May 20.
Microsoft, meanwhile, is offering voluntary buyouts (2) to roughly 7% of its employees, which is about 8,750 workers. The buyouts are being offered to long-time Microsoft employees and is part of an ongoing reorganization that's centered around its efforts to move forward its AI division.
The cuts at Nike, which will impact 1,400 employees, aren't directly AI related, although they take place largely in the company's technology department. COO Venkatesh Alagirisamy said the move was part of an ongoing turnaround that includes modernizing its manufacturing and a reshaping of the tech teams.
Not isolated incidents
These aren't the first recent staff reductions for Meta, Nike or Microsoft.
Just last month, Meta reportedly laid off several hundred people (3) across multiple teams in the Reality Labs division as well as social media and recruiting. In January, roughly 1,500 jobs were cut. And last February, the company slashed (4) 3,600 positions.
Microsoft isn't directly laying people off at this time, though that could be a possibility if it doesn't hit targets with the employee buyouts. Last year, though, it had several rounds of layoffs, resulting in roughly 15,000 people losing their jobs, with significant impacts on the Xbox teams.
This is the second round of layoffs at Nike this year. In January, 775 workers lost their jobs.
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A brutal year — with more to come
AI was cited as a factor in nearly 55,000 layoffs (5) in 2025, according to Challenger, Gray & Christmas, a consulting firm that specializes in employment. That could, however, be just the tip of the iceberg.
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A chilling forecast from Goldman Sachs in 2023 estimated that breakthroughs in generative AI could put as many as 300 million (6) jobs at risk.
"Our economists estimate that roughly two-thirds of U.S. occupations are exposed to some degree of automation by AI," the report reads. "They further estimate that, of those occupations that are exposed, roughly a quarter to as much as half of their workload could be replaced. But not all that automated work will translate into layoffs."
Gartner is a bit more upbeat, however. In February (7), that analytical firm said that by next year half of the companies that have cut customer service staff and replaced them with AI will rehire those workers.
"While AI-driven layoffs have captured attention, the reality is more complex," said Kathy Ross, Senior Director Analyst in the Gartner Customer Service & Support practice. "Most recent workforce reductions were influenced by broader economic conditions rather than automation alone. As organizations encounter the limits of AI and rising customer expectations, they will need to reinvest in human talent to sustain service quality and growth."
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
The Wall Street Journal (1),(2); Reuters (3); Yahoo Finance (4); CNBC (5); Goldman Sachs (6); Gartner (7)
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Chris Morris is a veteran journalist with more than 35 years of experience, the majority of which were spent with some of the Internet’s biggest sites, including CNNMoney.com, where he was director of content development, and Yahoo! Finance, where he was managing editor. His work has also appeared on Fortune, Fast Company, Inc., CNBC.com, AARP, Nasdaq.com, and Voice of America, as well as dozens of other national publications.
