Tech Giants Prioritize AI with Widespread Layoffs and Hiring Shifts

Meta has initiated a round of layoffs, affecting around 4,000 employees, or 5% of its workforce, as the company shifts its focus toward artificial intelligence. CEO Mark Zuckerberg had warned of the layoffs in an internal memo, emphasizing the need to "raise the bar" and "move out low-performers faster" in preparation for what he expects to be an intense 2025. Meta is now focusing on ramping up its hiring of machine-learning engineers to bolster its AI initiatives, according to Business Insider.

Workday also made significant staff cuts last week, laying off 1,750 employees—approximately 8.5% of its workforce—as part of its strategy to prioritize AI. Similarly, Salesforce is laying off over 1,000 workers while increasing hiring for sales roles tied to its AI products. Google, too, is offering buyouts to employees working in its platforms and devices teams, with further cuts expected in areas that focus on AI.

In total, the combined capital expenditures on artificial intelligence by Amazon, Microsoft, Google, and Meta are projected to surpass $320 billion this year. This shift toward AI comes amid growing concerns among investors, who are wary of cheaper AI models, like DeepSeek, that could challenge the dominance of these tech giants.