Silicon Valley "Layoff Storm": Meta to cut 10% of employees, Microsoft proposes "buyouts" for 7% of staff

Meta and Microsoft announced layoffs of over ten thousand employees within hours, as the AI arms race is forcing Silicon Valley giants to restructure their workforce under the banner of "efficiency first." This round of layoffs is not purely about cost control but is a "blood exchange" logic of replacing low-wage versatile workers with high-salary AI specialists. Followed by layoffs from Snap, Block, and others, a new era of white-collar unemployment and large-scale slimming down in the tech industry has quietly taken shape.
Tech giants are reshaping their workforce at an unprecedented speed. Driven by the capital expenditure pressure of the AI arms race, Meta and Microsoft announced major reduction plans within hours, and this large-scale layoff wave has spread to other Silicon Valley companies like Snap, Block, and Amazon. A new era of the tech industry, centered on "efficiency first," is forming.
According to The Wall Street Journal on Thursday, Meta plans to cut about 10% of its staff by May 20, involving approximately 8,000 people, and will keep 6,000 planned new hires vacant, affecting nearly 18% of the company's current total employees.
In an internal memo, Meta characterized this round of layoffs as a necessary move to "improve operational efficiency and free up space for other investments." Some analysts believe that the essence of Meta's layoffs is closer to "employee replacement" rather than pure cost control—those laid off are often generalist roles, while new hires are likely higher-paid AI and specialized technical talents.
Meanwhile, Microsoft announced the launch of its first voluntary retirement plan in 51 years, targeting about 7% of its U.S. employees. With approximately 126k employees in the U.S., the potential number of departures could exceed 9,000.
At the time of layoffs, the stock prices of both companies came under pressure. Microsoft's stock has fallen nearly 20% over the past six months, and as of early April, it recorded its worst performance since 1997; Meta's stock price has remained roughly flat this year.