Microsoft offers voluntary buybacks to 60,000 employees alongside massive capital expenditure and workforce adjustments
Meta reassigns staff to AI roles, while Salesforce automates customer service
Major U.S. tech companies are ramping up investments in artificial intelligence while simultaneously trimming legacy headcount. While pouring massive amounts of capital into data centers and semiconductors, companies are increasingly cutting staff or relocating them to different departments in areas such as customer support and administration.
Microsoft has offered voluntary buybacks to roughly 27% of its total workforce, while Meta has redeployed existing staff into AI-related roles. Salesforce has downsized its customer support division following the adoption of AI-driven service agents. The fierce race in AI is transforming not only corporate capital expenditure but also the day-to-day roles assigned to employees.
Microsoft eyes $175B in capex while offering buybacks to 60,000 workers
According to Reuters and the Financial Times on the 26th (local time), Microsoft has offered voluntary departures to about 60,000 employees across certain units in the U.S., UK, Canada, and India. This accounts for roughly 27% of its 223,000 total workforce as of the end of June. The final number of departing employees has not yet been finalized.
The affected groups include units related to Windows, Xbox, and Copilot, as well as finance and human resources departments. Certain divisions, such as security, marketing, and data centers, were excluded.
Microsoft projected its capital expenditures for the year at $175 billion. Driven by rising investments in AI data centers and semiconductors, free cash flow for the latest quarter fell 23% year-on-year to $19.6 billion.
Microsoft stated that the voluntary buybacks are not a direct measure to fund its AI investments. Amy Coleman, Chief Human Resources Officer, explained in a memo to employees that the decision was made to adapt to changing workforce demands.
Amazon also announced white-collar job cuts totaling roughly 30,000 positions across two rounds in October of last year and January of this year. In July, the company also trimmed staff in its Artificial General Intelligence (AGI) research division. Workforce adjustments are taking place even within AI development sectors depending on business priorities.
AI takes over customer service as workers shift to new roles
When Meta cut about 10% of its total workforce last May, it simultaneously transitioned 7,000 employees into new AI-related roles. The company reduced traditional management positions while strengthening organizations dedicated to AI agent development and workflow automation.
According to internal documents obtained by Reuters, Meta has moved existing employees into units responsible for developing AI agents and analyzing productivity. This move aims to leverage AI not only in service development but also in internal corporate operations.
Salesforce has reduced its customer support headcount from roughly 9,000 to 5,000. Chief Executive Officer Marc Benioff stated in a podcast interview last year that the need for customer support staff has declined following the introduction of its AI service, "Agentforce."
According to Salesforce, Agentforce has handled 2.6 million customer interactions with a resolution rate reaching 63%. The company has combined natural attrition with reduced new hiring while reassigning hundreds of existing employees to sales and professional services.
Oracle's headcount also dropped by 21,000 year-on-year to 141,000 at the end of May this year. The company cited the adoption of AI, shifts in business strategy, and organizational restructuring as the background for its workforce adjustments.
The layoffs across Big Tech have also been influenced by efforts to streamline organizations that expanded during the pandemic and to execute business restructuring. However, instances where AI adoption directly reduces labor demand for traditional tasks—as seen in Salesforce—are increasingly evident.
The long-standing formula that increased AI investment leads to job growth is shifting. Companies are automating repetitive tasks while concentrating headcount on AI development and core technology sectors. Competition among tech giants is now moving beyond investment volumes to reshape employee roles and job structures as a whole.
