Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, is set to cut some 5% of its workforce through performance-based terminations, while simultaneously planning to hire new employees to fill those roles later this year, Bloomberg reports.
The move was announced in an internal memo sent to employees, signaling a shift toward a more stringent performance management approach.
As of September, Meta employed roughly 72,000 people, meaning the 5% reduction could impact around 3,600 jobs. CEO Mark Zuckerberg stated in the memo that he has “decided to raise the bar on performance management and move out low-performers faster.”
Zuckerberg explained that while the company typically manages out underperforming employees throughout the year, they will now implement more “extensive performance-based cuts during this cycle.” Meta’s performance review cycle is expected to conclude in February.
Affected employees in the US are expected to be notified on February 10th, while those based in other countries will be informed at a later date. The terminations will only apply to staff who have been with the company long enough to be eligible for a performance review. Zuckerberg assured employees that Meta will “provide generous severance” in line with past layoffs.
Meta’s shares experienced a 2.1% decline on Tuesday, continuing a downward trend that began Monday, following the announcement.
These layoffs follow Zuckerberg’s declaration of 2023 as Meta’s “year of efficiency,” during which the company announced plans to eliminate 10,000 positions. In a recent note to managers, Zuckerberg clarified that these performance-based cuts are aimed at ensuring the company has the “strongest talent” and can “bring new people in.”
Including attrition from last year, Meta expects its total headcount to be down 10% by the end of the current performance cycle. Headcount decisions will be made on an organization-by-organization basis, considering the respective reductions from last year.
The move is part of a broader series of changes at Meta announced last week. These include the disbanding of US-based fact-checking on its platforms, the scaling back of diversity and inclusion efforts, and changes to its “hateful conduct” policy to allow more flexibility in language used when discussing immigrants, women, and transgender and nonbinary people. These changes have coincided with Zuckerberg’s efforts to improve relations with President-elect Donald Trump, whose inauguration he plans to attend.
Zuckerberg stated that he is positioning the company for an “intense year” focused on artificial intelligence, smart glasses, and the future of social media.
Meta is not alone in making performance-based job cuts at the start of the new year. Last week, Business Insider reported that Microsoft Corp. would also be targeting underperforming employees with layoffs.
