Meta and Microsoft announced combined workforce reductions of up to 23,000 positions on April 23, 2026, despite both reporting record revenues. Meta is cutting 8,000 jobs (10% of staff) and cancelling 6,000 open roles, while Microsoft launched its first-ever voluntary retirement programme targeting employees whose age plus years of service equals 70 or more. Both companies are redirecting savings into massive AI infrastructure buildouts — Meta plans $115–135 billion in AI capex for 2026, nearly double its 2025 spend. This is part of a broader 2026 tech layoff wave affecting over 96,000 workers, a 40% increase over the same period in 2025. Analysts describe an 'AI employment paradox' where companies simultaneously cut headcount and invest record sums in AI, raising questions about whether AI is genuinely replacing displaced workers or whether the cuts are primarily a financial signal to Wall Street.
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