Silicon Valley is going through a painful but precise tissue replacement operation. While investors are reacting enthusiastically to new stock market records, thousands of Met and Microsoft employees are finding out that their roles are becoming redundant in the new algorithm-oriented world order. What we are seeing is no longer just an echo of the Pocovid correction, but a fundamental shift in strategic priorities.
The Met has just announced a 10 per cent reduction in its workforce, which, combined with the elimination of unfilled vacancies, means the removal of nearly 14,000 jobs from the labour market. However, a deeper financial analysis of Mark Zuckerberg’s company reveals a second bottom to this decision. The company plans to increase capital expenditure to as much as $135 billion in 2027, focusing on building data centres and developing Superintelligence Labs.
This is a classic example of aggressive reallocation of resources: billions saved on the ‘traditional’ workforce are funding an artificial intelligence arms race. Behind the scenes, however, there is talk of the phenomenon of “AI-washing” – conveniently attributing redundancies to technological advances to cover up the 2020-2022 recruitment mistakes.
Microsoft in Redmond, on the other hand, is employing a more subtle but equally telling tactic. For the first time in its history, the giant has opted for a voluntary departure programme targeting around 7% of its US workforce. The ‘sum 70’ criterion (combining age and seniority) suggests that the company wants to slim down the structure of costly, experienced managers whose competencies may not be suited to the era of generative models. At the same time, Microsoft is simplifying the reward and bonus system, giving executives more leeway to reward the talent that realistically drives new business divisions.
This trend is not isolated – Amazon, Intel or Cisco are following a similar path. There is a clear lesson for the business world: operational efficiency in 2026 is no longer about having the largest teams, but about building the most scalable systems. The technology labour market is no longer a safe haven, becoming a testing ground for a new definition of corporate productivity.
