Meta Platforms (META, Financial) announced plans to cut approximately 5% of its workforce, targeting the lowest-performing employees. The company intends to refill these positions later this year. CEO Mark Zuckerberg has informed employees of potential additional layoffs aimed at raising performance management standards. As of September 30, 2023, Meta employs over 72,000 people.
Many tech companies, including Cisco (CSCO) and IBM (IBM), are shifting their focus towards artificial intelligence (AI) technologies. Meta is also investing billions in AI infrastructure, with spending expected to increase this year. Since 2022, Meta has initiated several structural reforms, including a layoff plan affecting around 11,000 employees. Zuckerberg has labeled 2023 as the "year of efficiency" and announced plans to cut about 10,000 positions.
Additionally, Meta recently canceled its fact-checking project in the U.S. and eased restrictions on discussions around controversial topics like immigration and gender identity. This move is seen as a response to conservative pressures, especially with former President Trump preparing for a potential return to the U.S. presidential race.
Meta Platforms' stock closed down 2.31%, at $594.25.
