In a significant move impacting its global workforce, Meta Platforms, the parent company of Facebook and Instagram, announced plans to lay off approximately 5% of its employees as part of an effort to improve performance and refocus resources on strategic priorities like artificial intelligence (AI) and the metaverse. CEO Mark Zuckerberg communicated the decision through an internal memo, emphasizing the need to raise performance standards across the company.
Performance-Based Cuts Target Low Performers
According to the memo, the layoffs will affect Meta’s lowest-performing employees, identified during the company’s annual performance review cycle. The process includes self-reviews, peer reviews, and manager evaluations, which began earlier this month. Employees in the U.S. who are impacted will be notified by February 10, with international notifications to follow later.
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“We typically manage out people who aren’t meeting expectations over the course of a year,” Zuckerberg wrote. “But now we’re going to do more extensive performance-based cuts during this cycle.”
Meta, which reported a workforce of over 72,000 employees as of September 2024, is expected to cut approximately 3,600 positions. However, Zuckerberg noted that roles vacated due to the layoffs would likely be backfilled in 2025, ensuring a balanced workforce.
Generous Severance Packages for Affected Employees
Employees affected by the layoffs will receive severance packages consistent with those offered in previous workforce reductions. In 2022 and 2023, Meta laid off over 21,000 employees, a restructuring effort dubbed the “Year of Efficiency.” The upcoming layoffs are the largest since those earlier cuts, signaling Meta’s continued efforts to optimize operations and strengthen its position in a competitive tech industry.
Restructuring Priorities: AI and Strategic Refocus
Meta is investing heavily in artificial intelligence, which Zuckerberg views as a critical growth area. The company has allocated billions of dollars toward AI infrastructure, joining other tech giants like Cisco and IBM in prioritizing AI innovation. Despite the workforce reduction, these investments are expected to rise further in 2025.
The layoffs also coincide with Meta’s broader restructuring of internal policies. The company recently dismantled its diversity, equity, and inclusion (DEI) programs, which had been in place for years. Janelle Gale, Meta’s vice president of human resources, cited the increasingly “charged” nature of the DEI term as a reason for the shift.
In addition, Meta replaced its third-party fact-checking program in the United States with a “Community Notes” system. Inspired by the model used on Elon Musk’s X (formerly Twitter), this community-driven approach allows users to flag potentially misleading posts and provide context through collective input.
Controversial Shifts in Content Moderation
Meta’s decision to revise its content moderation policies has also sparked debate. The company now permits certain types of content previously banned under its hateful conduct guidelines, such as derogatory references to women and non-binary individuals. Critics argue that these changes could erode trust in Meta’s platforms and signal a shift to appease certain political factions.
In a recent appearance on Joe Rogan’s podcast, Zuckerberg expressed regret over what he described as excessive deference to media narratives following the 2016 election. He framed Meta’s recent decisions as an effort to restore balance and prioritize free expression.
Financial and Workforce Outlook
Despite the turbulence, Meta’s financial performance remains strong. The company reported a 19% increase in revenue for the third quarter of 2024, earning $40.59 billion. This growth highlights the resilience of Meta’s core advertising business and its ability to adapt to changing market dynamics.
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For employees, however, the recent changes mark another challenging chapter. From mass layoffs to the dissolution of diversity programs, Meta’s workforce has endured significant upheaval in recent years. Yet, Zuckerberg remains optimistic, stating, “This is going to be an intense year, and I want to make sure we have the best people on our teams.”