Aligning with Mass Layoffs on AI! Microsoft Launches First Voluntary Retirement Plan in 51 Years; Meta Cuts 8,000 Jobs

Large technology companies are accelerating personnel restructuring. Microsoft and Meta announced significant reduction plans within hours of each other. Meta stated that the layoffs are a necessary measure to improve operational efficiency and reallocate capital against the backdrop of continuously expanding AI spending.

According to media reports, Microsoft has launched its first voluntary retirement plan in its 51-year history, targeting senior directors and below, with eligibility requiring the sum of tenure and age to reach 70 or more. The plan may affect about 7% of Microsoft's U.S. employees; based on a total of approximately 126,000 U.S. employees, the potential number of departures could reach 9,000.

Meanwhile, Meta plans to cut approximately 10% of its workforce by May 20, involving around 8,000 employees, and will keep 6,000 open positions vacant. Meta had a total workforce of approximately 79,000 at the end of last year.

Stock prices for both companies have come under pressure. Microsoft shares hit their worst performance since 1997 according to Bloomberg as of early April, while Meta's stock price has remained essentially flat this year.

Microsoft Launches First Voluntary Retirement Plan in 51 Years, Potentially Releasing Over 9,000 Positions

This personnel adjustment at Microsoft is a continuation of recent tightening measures. In late March, it implemented hiring freezes for certain roles in its cloud computing and sales divisions. This voluntary retirement plan marks the first time such a mechanism has been introduced in the company's documented 51-year history.

According to an internal memo cited by CNBC, the plan is characterized as a "one-time retirement program." Amy Coleman, Executive Vice President and Chief People Officer at Microsoft, wrote in the memo: "We hope this program allows eligible employees to take the next step at their own pace, with generous support from the company."

Microsoft's 2025 annual report shows a global workforce of approximately 228,000, including about 126,000 employees in the United States. If the voluntary retirement plan affects roughly 7% of U.S. employees, the potential scale of departures could exceed 9,000.

Although CNBC noted that actual participation is expected to be only a "small fraction" of employees, this figure still represents the largest proactive personnel restructuring the company has undertaken to date.

Synchronized with the personnel adjustments, Microsoft is also reforming its compensation system. The company is separating equity incentives from cash bonuses and simplifying management performance evaluation options from nine tiers to five, granting managers greater flexibility to concentrate resources on rewarding core employees.

Meta Cuts 8,000 Jobs, Focusing on Efficiency and AI Capital Reallocation

Meta's layoffs constitute a planned structural adjustment. Janelle Gale, Meta's Chief People Officer, stated in an internal memo:

"This is one of our initiatives to continuously improve operational efficiency and create room for other investments. I know this is unwelcome news, and confirming this decision will make everyone uneasy, but we believe it is the best path forward under the current circumstances."

The layoffs involve approximately 8,000 employees, with an additional 6,000 open positions remaining vacant, collectively impacting nearly 18% of Meta's current total workforce. The cuts are expected to be executed on May 20.

The actions taken by Microsoft and Meta are not isolated events but share a common structural background: under immense capital expenditure pressure for AI infrastructure and data center construction, technology companies are compressing labor costs to free up space for strategic investments.

Microsoft is currently in a capital-intensive cycle driven by AI, with data center expansion constituting its primary financial pressure point. Meta is also continuously increasing investment in AI infrastructure. With revenue growth facing uncertainty, reducing labor costs has become a direct means to balance capital allocation.

Furthermore, according to earlier reporting by The Wall Street Journal this week, the Gates Foundation is planning to cut approximately 500 positions, representing about 20% of its total workforce.