Meta is set to reduce its workforce by approximately five percent, focusing on underperforming employees.
Meta Platforms Inc. is set to cut approximately five percent of its workforce through performance-based terminations, with plans to hire new employees later this year, according to an internal memo. As of September, Meta employed about 72,000 people, so this reduction would impact around 3,600 jobs. CEO Mark Zuckerberg shared in the memo that the company intends to accelerate the removal of low performers, saying, “We typically manage out people who aren’t meeting expectations over the course of a year, but now we’re going to do more extensive performance-based cuts during this cycle.” The performance review cycle is expected to conclude in February, with US-based employees being notified of their termination on February 10. Employees in other countries will be informed at a later time.
This decision comes after Zuckerberg had designated 2023 as the company’s “year of efficiency,” during which Meta already eliminated 10,000 positions. The performance cuts are part of the company’s effort to ensure it retains the “strongest talent” while also making room for new hires. The company plans to reduce its overall headcount by 10 percent by the end of the performance cycle, factoring in an additional five percent reduction from last year’s attrition. Meta is also offering “generous severance” for the affected employees, consistent with past layoffs. Despite the announcement, Meta’s stock dropped 2.1 percent on Tuesday, continuing a decline that started earlier in the week.
The Menlo Park, California-based company, which encompasses platforms like Facebook, Instagram, and WhatsApp, will determine staffing reductions for each division based on the cuts they made last year.
In addition to the workforce changes, Zuckerberg recently announced several shifts at Meta, including the dissolution of US-based fact-checking efforts on its platforms, the end of many diversity and inclusion initiatives, and a revision of the company’s “hateful conduct” policy to allow more flexibility regarding language used around immigrants, women, and transgender and nonbinary people. These changes align with Zuckerberg’s efforts to strengthen relations with President-elect Donald Trump, whom he plans to meet during the upcoming inauguration.
In his note to staff, Zuckerberg stated that he is preparing the company for what he anticipates will be an “intense year” focused on Artificial Intelligence (AI), smart glasses, and the future of social media.
Meta is not the only tech company making performance-based layoffs at the beginning of the year. Last week, Business Insider reported that Microsoft Corp. also plans to reduce its workforce by targeting underperforming employees.
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