The AI ​​Race

Microsoft offers severance packages to 60,000 employees

Microsoft is offering severance packages to 60,000 employees as part of its transition into the AI ​​era. This was stated by the tech giant’s HR chief, Amy Coleman, in an internal memo seen by Bloomberg.

At the end of June, Microsoft had 223,000 employees, meaning that approximately one-quarter of its workforce is covered by the offer.

The offer applies to certain employees in the United States, Canada, India, and the United Kingdom; however, staff in areas such as data centers and sales are excluded. According to a spokesperson, Microsoft aims to retain employees who are committed to addressing the company’s complex challenges.

In recent years, the tech giant has streamlined its organization, cutting tens of thousands of positions. In July, more than 30 percent of the 8,750 affected employees accepted an offer for voluntary departure. This time, significantly fewer are expected to accept, according to the spokesperson.

Meta seeks to raise 950 billion SEK for AI investments

Meta—the parent company of Facebook and Instagram—plans to raise the equivalent of 950 billion SEK through the issuance of additional shares, according to a press release.

Starting today, Meta is issuing shares valued at the equivalent of 350 billion SEK. Over the coming year, the company intends to raise an additional 600 billion SEK through the sale of Class C shares. The funds are earmarked for the expansion of AI, the Financial Times reports.

When Meta released its quarterly report last week, the company’s stock fell 7 percent, partly due to concerns regarding how investments in AI will be financed.