Meta and Microsoft announce layoffs as new AI-driven capabilities meet tech 'rightsizing'

Summary

Julia Boorstin reports on Meta and Microsoft announcing a combined 23,000 job cuts, driven by AI efficiency and a shift toward investing in GPUs and data centers. The layoffs are part of a broader trend of tech companies doing more with fewer workers.

• Meta and Microsoft announced 23,000 job cuts in the past 24 hours.
• Layoffs reflect a move toward AI-driven efficiency and doing more with fewer workers.
• Meta's headcount peaked at 87,000 in Q3 2022 and fell to 67,000 by end of 2023.
• Savings from job cuts are funding investments in GPUs and data centers.
• Meta is spending up to $135 billion on capital expenditures this year.
• Microsoft's run rate puts it on pace for $145 billion in capital expenditures.
• Analyst Dan Ives views the layoffs as part of Meta's strategy to leverage AI tools for automation.