Big Tech companies are cutting thousands of jobs while maintaining record shareholder payouts as they invest $750 billion in AI infrastructure in 2026

Meta eliminated roughly 8,000 roles in May 2026—about 10% of its workforce—with CEO Mark Zuckerberg directly tying these moves to rising AI costs. The 'information' sector lost jobs more broadly, with industry trackers counting more than 127,000 tech layoffs in 2025 and thousands more in early 2026.

S&P 500 dividends per share reached $78.92 in 2025, up from $66.92 in 2022—a cumulative gain of roughly 18%. Post-ChatGPT (2023–2025), dividend growth averaged 5% to 6% annually, consistent with long-term historical averages. Payout ratios remained low at around 32%, well below the historical average of 55%.

The Big Four hyperscalers—Alphabet, Amazon, Meta Platforms, and Microsoft—have committed to spending around $750 billion in capital expenditures in 2026 mostly for AI infrastructure. Companies are able to fund both AI spending and shareholder returns through strong free cash flow from core businesses and targeted headcount optimization.