3,600 jobs to be eliminated as Meta refines team rerformance

Meta CEO Mark Zuckerberg informed employees on Tuesday that the company will accelerate the termination of “low performers,” which will result in layoffs affecting approximately 5 percent of the workforce. This decision aligns with Meta’s efforts to develop new AI-powered services and immersive technologies.

Zuckerberg expressed his commitment to “raise the bar on performance management” in an internal memo, stating, “This is going to be an intense year, and I want to make sure we have the best people on our team.” The anticipated staff cuts are set to affect around 3,600 positions, based on Meta’s employment of approximately 72,000 people as of September 2024.

Affected employees in the U.S. are expected to be notified on February 10, while international employees will be informed at a later date. The memo outlined that the layoffs will include staff eligible for performance reviews. Zuckerberg noted that those let go will receive “generous severance,” consistent with past layoffs, and the company plans to refill these roles in 2025.

This marks a continuation of Meta’s recent restructuring efforts, which previously included significant job cuts in 2022 and 2023, reducing the workforce by about 14,910. By the end of the third quarter of 2024, the company reported $40.59 billion in revenue, a 19 percent increase from the previous year.

Historically, Meta’s performance management system includes a wide range of employee ratings, with managers working alongside the HR department to ensure calibrated evaluations. Zuckerberg stated that while the company normally manages out employees who fall short of expectations over the year, it will now implement more extensive performance-based cuts during the upcoming evaluation cycle.

Zuckerberg acknowledged the challenges of job cuts, stating, “Letting people go is never easy,” but expressed optimism that these decisions would lead to stronger teams capable of driving “leading technology to enable the future of human connection.” Alongside the restructuring plans, Meta recently disbanded its diversity and equity initiatives, reversing efforts aimed at fostering inclusion.

In a related context, Microsoft also announced performance-based job cuts targeting underperforming employees at the beginning of the year. Meta’s anticipated reductions come as part of its broader strategy for efficiency, with plans to reduce headcount by 10 percent during the current performance cycle.

Featured image credit: Meta