Meta to Cut 5% of Workforce in Performance-Based Terminations
Meta Platforms Inc. is set to reduce its workforce by approximately 5% through performance-based terminations, as outlined in an internal memo circulated to employees. With a total workforce of around 72,000 as of September, this decision could impact roughly 3,600 employees. CEO Mark Zuckerberg stated in the memo, reviewed by Bloomberg News, that the company aims to raise its performance standards and expedite the removal of underperforming staff.
Shifting Approach to Performance Management
Zuckerberg highlighted a shift in Meta’s approach to managing employee performance. “We typically manage out people who aren’t meeting expectations over the course of a year,” he explained. However, the company is now adopting a more accelerated process for performance-based cuts during this evaluation cycle. This decision reflects Meta’s broader strategy of streamlining operations while maintaining a focus on high-performance standards.
Impact on Meta’s Workforce
The company has indicated plans to replace the roles of terminated employees with new hires later in the year. This approach suggests that Meta is focusing on realigning its workforce to better suit the company’s evolving priorities. According to an insider familiar with Meta’s internal procedures, the current performance cycle is set to conclude in February, signaling that the staff reductions could take effect shortly afterward.
Broader Implications for Meta’s Strategy
This move comes as Meta continues to navigate a challenging economic landscape while investing heavily in emerging technologies such as the metaverse and artificial intelligence. By focusing on performance-based terminations and targeted hiring, Meta aims to optimize its workforce for growth in key areas. The decision also underscores the ongoing pressure on tech companies to balance innovation with operational efficiency amid fluctuating market conditions.