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A.I. Is Forcing More Belt-Tightening at Big Tech

Microsoft has signaled it will keep cutting costs to fund its A.I. ambitions. So, too, has Meta, which has made A.I. its biggest priority as it seeks to catch up to OpenAI, Anthropic and Google....

A.I. Is Forcing More Belt-Tightening at Big Tech

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A.I. Is Forcing More Belt-Tightening at Big Tech

The growing expense of keeping up in the artificial intelligence race is driving technology companies, young and old, to costs.

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· 15:27 min

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By

Andrew Ross Sorkin

Bernhard Warner

Sarah Kessler

Michael J. de la Merced

Niko Gallogly

Brian O’Keefe

and

Ian Mount

April 24, 2026,

8:08 a.m. ET

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Tech companies like OpenAI, and its C.E.O., Sam Altman, are under increasing pressure to rethink costs.

Credit...

Mike Kai Chen for The New York Times

In today's newsletter:

Cost-cutting for A.I.

Mamdani versus Citadel

Strait talk

Talking A.I. with the co-C.E.O. of Gensler

Andrew here.

There’s so much going on today: Tech companies are laying off employees (cue the questions about A.I.’s impact). The Saudis are pulling back on funding the Metropolitan Opera given the war in Iran. Citadel is threatening, not so subtly, to scale back its ambitions in New York City in the face of criticism from the mayor focused on Ken Griffin, its C.E.O.

We get into all that, and much more, below.

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Cost-cutting for A.I.

Tech companies increasingly feel under pressure to cut costs to afford the artificial intelligence race.

But the call to lay off workers and reduce spending isn’t just being felt at established titans like Microsoft and Meta. Younger ones, including OpenAI, are also facing tough financial decisions.

The latest:

Microsoft

offered early retirement

to about 7 percent of its U.S. work force, specifically long-tenured senior executives.

Meta officially announced plans to cut 10 percent of its employee rolls, or about 8,000 workers, and closed another 6,000 open roles.

These are hardly isolated moves. Overall, 98 tech companies have announced plans to cut more than 92,000 employees this year,

according to Layoffs.fyi

, which tracks job losses in the industry.

Microsoft has signaled it will keep cutting costs to fund its A.I. ambitions. So, too, has Meta, which has made A.I. its biggest priority as it seeks to catch up to OpenAI, Anthropic and Google.

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