First Thing: Microsoft and Meta cut thousands of staff as they bet big on AI

Meta to lay off 10% of its staff and Microsoft to offer retirement to 7% of US workforce. Plus, Iron Maiden at 50

Good morning.

Meta and Microsoft are cutting thousands of employees as they bet big on AI and executives claim that the technology is meeting productivity needs.

What have they said about AI? Mark Zuckerberg said in January that AI was making some hiring unnecessary. Mustafa Suleyman, Microsoft's AI chief, said in February that he believed AI would be able to replace most white-collar work within the next 12 to 18 months.

How many tech layoffs have there been in 2026? In four months, more than 92,000 employees in the industry have lost their jobs, according to the tracker Layoffs.fyi. But some experts believe companies may be AI washing" - using it as cover for a slowing labor market and demand or rising costs.