Meta Platforms Inc. is set to lay off around 5 per cent of its workforce identified as low performers, according to an internal memo, cited in a Bloomberg report. This move is part of CEO Mark Zuckerberg's initiative to streamline operations and enhance performance after a challenging year for the company.
Zuckerberg stated in the memo that the company is tightening its performance management to expedite the removal of underperforming employees. He mentioned, "I've decided to raise the bar on performance management and move out low-performers faster." The layoffs are part of Meta's broader aim to achieve "non-regrettable attrition," targeting about 10% of employees in this category by the end of the current performance cycle. Approximately 5% of these cuts will involve current employees with performance ratings. Affected employees will receive generous severance packages.
This announcement comes as Meta continues to restructure the company policies after US President-Elect Donald Trump's victory. In the past year, Meta has already laid off thousands as part of what Zuckerberg termed the "Year of Efficiency," focusing on cost-cutting, team optimisation, and streamlining operations to boost profitability.
Recent policy changes and strategic shifts
The planned layoffs come amidst significant changes Meta has made to its policies and operations, many of which have sparked controversy both internally and externally:
1. Content Moderation Changes: Meta recently loosened its moderation rules, allowing more leniency for posts that criticise immigrants, transgender people, and other topics tied to political debate. The policy changes were framed as a return to “free expression” but faced significant backlash from employees who viewed them as harmful to marginalised groups.
2. End of Fact-Checking in the US: The company also announced the termination of its third-party fact-checking programme in the United States, raising concerns about the spread of misinformation on its platforms.
3. Scaling Back Diversity Efforts: Meta has cut back on internal training and hiring programmes aimed at improving workforce diversity, further fuelling criticism about the company’s shifting priorities. 4. Focus on the Metaverse and Threads: Despite the cost-cutting measures, Meta continues to invest heavily in its metaverse ambitions and its Twitter rival, Threads. However, the metaverse project has faced slow adoption and significant financial losses, while Threads struggles to maintain active users after an initial surge in popularity.
The planned layoffs and policy shifts are expected to impact employee morale, with internal discussions revealing dissent over controversial policy updates and perceived misalignment with the company's original values.