Tech Giants Cut Thousands of Jobs to Fund AI Pivot

A wave of workforce reductions hit the technology sector in May 2026, with companies citing a strategic pivot toward artificial intelligence. Meta Platforms Inc. began laying off approximately 8,000 employees—about 10% of its global workforce—on May 20, while simultaneously reassigning 7,000 staffers to new AI-focused organizations. The company increased its 2026 capital expenditure guidance to up to $145 billion to fund this expansion. Meta later filed notices to cut an additional 1,400 workers in Washington state starting in July.

Intuit Inc. eliminated roughly 17% of its global workforce, totaling 3,000 roles, to streamline operations and integrate AI models from partners OpenAI and Anthropic. The restructuring included closing offices in Reno and Woodland Hills and reducing overlapping roles between TurboTax and Credit Karma. Despite the cuts, Intuit reported quarterly revenue of $8.56 billion, though its stock plummeted following reports of slower TurboTax sales.

Other significant reductions included Acrisure, which is cutting 2,250 employees (11%) through 2027, and Wix.com, which is downsizing by up to 1,000 employees (20%) following a first-quarter net loss. LinkedIn also laid off 606 employees, while its parent company, Microsoft, introduced buyout offers for 7% of its workforce.

Industry reactions remain divided. Analysts and firms like Challenger, Gray & Christmas report nearly 50,000 AI-related layoffs in the U.S. so far in 2026, with some experts warning that companies may be using AI as a narrative to frame layoffs positively for investors.