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Meta to Lay Off 5% of ‘Lowest Performers’, Plans to Rehire for Impacted Roles

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Meta Platforms announced that it will lay off approximately 5% of its workforce, targeting its “lowest performers.” The company, which employed more than 72,000 individuals as of September 30, will seek to fill the positions of those affected later this year. The decision is part of Meta’s ongoing efforts to “raise the bar” on performance management, according to a spokesperson for CEO Mark Zuckerberg.

Zuckerberg has previously indicated that more job cuts could be on the horizon in the coming months, as the company works to streamline operations and improve efficiency. This is in line with Meta’s broader shift toward prioritizing artificial intelligence (AI) investments, with billions being funneled into AI infrastructure to stay competitive in the rapidly evolving tech landscape. Many other tech firms, including Cisco and IBM, have made similar moves to redirect investments into AI.

The announcement follows significant restructuring efforts in 2022, which led to the loss of around 11,000 jobs. Meta’s “Year of Efficiency” in 2023 saw the company eliminate an additional 10,000 roles as part of cost-cutting initiatives.

In a related move, Meta also made headlines last week by canceling its U.S. fact-checking program and relaxing restrictions on certain controversial topics. This was seen as a response to pressure from conservative groups ahead of Donald Trump’s return to the U.S. presidential race.

 

Airbus, Thales, and Leonardo Plan New European Satellite Venture Amid Industry Challenges

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INTRODUCTION:
European aerospace giants Airbus, Thales, and Leonardo are reportedly in discussions to establish a joint satellite venture, codenamed “Project Bromo.” This ambitious initiative aims to challenge Elon Musk’s Starlink network and reshape Europe’s satellite sector, which has struggled with losses and competitive pressures from low-cost satellites in low Earth orbit (LEO).

KEY DETAILS

  1. Project Bromo – A European Satellite Champion:
    • The venture, modeled on missile maker MBDA, envisions a standalone entity combining satellite assets rather than a traditional acquisition structure.
    • This collaborative effort seeks to leverage the strengths of the three companies to create a scalable and competitive European satellite enterprise.
    • Leonardo CEO Roberto Cingolani confirmed discussions about adopting the MBDA model but noted governance structures may vary.
  2. Strategic Drivers:
    • Europe’s leading satellite makers, traditionally focused on high-complexity geostationary orbit spacecraft, are adapting to the rapid rise of smaller, cost-efficient satellites in LEO.
    • Cingolani emphasized that satellites could account for 75% of the space economy in the future, highlighting the need for Europe to stay competitive in this evolving market.
  3. Job Cuts Across the Industry:
    • Parallel to the satellite initiative, Airbus plans to cut up to 2,500 jobs in its Defence and Space division, representing 7% of its workforce, by mid-2026.
    • Thales has announced plans to reduce 1,300 space-related positions as part of restructuring efforts.
    • Most Airbus cuts are expected in its €2 billion space systems business, with reductions likely in France, Germany, the UK, and Spain.
  4. Historical Challenges:
    • The European space industry has long discussed restructuring but has faced delays due to competition concerns and governance complexities.
    • Despite previous attempts, including Airbus’ 2001 pledge to restructure the space industry after forming MBDA, substantial progress has been elusive.
  5. Timeline and Implications:
    • Project Bromo is still in early stages and could take years to materialize.
    • If successful, the joint venture would provide Europe with a robust satellite manufacturing entity capable of competing with global players like Starlink.

MARKET AND COMPETITION

  • Global Satellite Trends: The space economy is shifting toward LEO satellites, driven by demand for affordable, scalable solutions for global internet connectivity and communication.
  • Challenges from Starlink: SpaceX’s Starlink dominates the LEO market with its extensive satellite network, presenting a formidable challenge to European firms.
  • European Collaboration: The MBDA-inspired model may allow for better resource pooling and coordinated competition, reducing fragmentation in the European satellite market.

CONCLUSION

Project Bromo represents a significant step toward strengthening Europe’s position in the satellite industry. However, its success depends on overcoming technical and governance hurdles and aligning the diverse interests of Airbus, Thales, and Leonardo. Simultaneously, widespread job cuts underscore the challenges facing the European space sector as it navigates competitive pressures and structural realignments.

European Companies Announce Job Cuts Amid Economic Slowdown

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Overview of Layoffs Across Key Sectors

As economic challenges persist across Europe, numerous companies have been forced to implement hiring freezes or reduce their workforce. Weak demand and uncertain market conditions are driving layoffs across industries. Below is a breakdown of significant announcements since August:

Banking Sector

  • DNB: The Norwegian lender plans to cut 500 full-time jobs within six months to address lower interest rates and heightened competition.
  • Santander: The Spanish bank will reduce over 1,400 jobs in its UK operations.
  • UniCredit: Italy’s banking union Fabi reported an agreement involving 1,000 voluntary redundancies and the creation of 500 new jobs.

Automotive Industry

  • Michelin: The French tyre manufacturer is shutting two facilities in Western France, impacting 1,250 jobs.
  • Schaeffler: The German car parts and machinery maker will lay off 4,700 employees due to reduced demand from auto and industrial clients.

Industrial and Engineering

  • Northvolt: The Swedish battery producer plans to cut 1,600 jobs.

Retail and Consumer Goods

  • Auchan: The French supermarket chain intends to eliminate over 2,000 positions due to declining store traffic.
  • Husqvarna: The Swedish garden equipment firm will cut approximately 400 jobs, citing constrained consumer spending.

Telecom Sector

  • Telia: The Swedish telecom operator aims to cut 3,000 positions in 2024.

Other Industries

  • Airbus: Up to 2,500 jobs in the Defence and Space division will be cut by mid-2026.
  • Equinor: The Norwegian energy producer plans to reduce its renewable energy staff by 20%.
  • Infineon: The German chipmaker will cut 1,400 jobs globally and relocate another 1,400 roles to lower-cost countries.
  • Lufthansa: The German airline will gradually reduce administrative jobs by 20%.
  • Mondi: A fire-damaged paper mill in Bulgaria will be shut down, affecting 300 jobs.
  • SMA Solar: Up to 1,100 global positions will be cut at the solar parts supplier.
  • Shell: The energy giant plans a 20% workforce reduction in its oil and gas exploration division.
  • Solvay: The Belgian chemicals company will reduce its workforce by 300-350 jobs across multiple countries.
  • Tamedia: The Swiss media company is shutting two printing works, affecting nearly 300 employees.
  • UPM: The Finnish forestry group may eliminate 110 jobs in Finland and has announced closures in Germany, impacting nearly 400 jobs.
  • Yara: The Norwegian fertilizer producer will shut an ammonia unit in Belgium, potentially cutting 115 jobs.

Key Drivers of Layoffs

Economic stagnation, inflation, and weak consumer demand are cited as primary reasons for workforce reductions. While some companies implement temporary measures, others are restructuring long-term operations in response to sector-specific challenges.