Social media giant Meta (META, Financial) is set to lay off approximately 3,600 employees, marking what CEO Mark Zuckerberg describes as a "tense year" ahead. The company announced plans to cut 5% of its workforce, targeting underperforming employees, with positions to be refilled later in the year.
Zuckerberg shared in an internal memo that the layoffs aim to "raise performance management standards by swiftly eliminating underperformers." Despite the layoffs, the company will focus on artificial intelligence, smart glasses, and social media.
As of the end of September, Meta employed 72,404 people. The 5% reduction indicates about 3,600 jobs will be affected. Zuckerberg noted that the company typically manages underperformance over a year, but this cycle will see broader performance-based layoffs.
Not all employees failing to meet expectations will be dismissed if the company remains optimistic about their future performance. Affected employees will receive generous severance packages. Notifications for impacted U.S. employees will be sent by February 10, with international notifications to follow.
Unlike Meta's 2023 "Year of Efficiency" slogan, this round of layoffs focuses on maintaining talent circulation. Performance-based layoffs aim to ensure the company retains top talent while facilitating the introduction of new hires.
On the day of the announcement, Meta's stock fell 2.31%, closing at $594.25 per share, with a market cap of $1.50 trillion. This move aligns with recent significant changes at Meta, including adjustments to content moderation policies and restructuring of its diversity initiatives.
