Amid a strategic shift towards embracing artificial intelligence and augmented reality, Meta, the parent company of social media giant Facebook, announced plans to downsize its workforce by 5%. This decision reportedly aims to target “lowest performers,” according to a Bloomberg report that reviewed an internal memo.
The internal memo, as examined by Bloomberg, shows that Meta’s CEO, Mark Zuckerberg, is preparing for an “intense year” in 2025 that would demand accelerated innovation. To facilitate this, Zuckerberg shared his intention to “move out low performers faster” and create vacancies for new talent fitting Meta’s evolving needs.
“I’ve decided to raise the bar on performance management,” Zuckerberg stated in the internal memo. Traditionally, Meta managed out employees failing to meet expectations over a one-year period. However, the company will now conduct more substantial performance-based evaluations throughout this cycle.
The proposed cuts are projected to affect over 3,600 employees, based on Meta’s most recent headcount of about 72,000 employees. Notably, performance reviews will not be the sole determinant of employee cuts, as Zuckerberg emphasized potential retention of some employees if Meta holds an “optimistic view” of their future performance, according to a report by The Wall Street Journal.
Impacted employees will be informed by February 10 and offered “generous severance,” as per the memo. This initiative marks the largest employee reduction since 2023, when Meta laid off 10,000 workers during a phase termed as the “year of efficiency.”
Zuckerberg’s approach aligns with his earlier realization that a leaner organization enhances execution speed and productivity. He previously stated that “a leaner org will execute its highest priorities faster,” thereby positioning Meta as a “magnet for the most talented people.” During the “Year of Efficiency,” efforts were concentrated on eliminating duplicative or lower-priority projects.
The latest developments highlight Meta’s commitment to refilling positions with top talent and aligning its workforce with its stated ambitions in AI and AR. Further insights into Meta’s strategy can be found in their announcement here.