Meta is cutting approximately 5% of its workforce, impacting over 3,000 employees, as part of a strategic shift toward focusing on artificial intelligence and smart technology. CEO Mark Zuckerberg announced this week in an internal memo to employees that the company will “move out low-performers” and incessantly focus on growth.
Zuckerberg raises the bar on performance ahead of growth overhaul
“I’ve decided to raise the bar on performance management,” Zuckerberg told employees this week according to Bloomberg. “We typically manage out people who aren’t meeting expectations over the course of a year, but now we’re going to do more extensive performance-based cuts during this cycle, with the intention of backfilling these roles in 2025,” the memo reportedly reads.
U.S. employees affected by the layoffs are expected to be notified by February, with international staff to be informed at a later date. The cuts will target only those who have recently undergone an internal performance review, with all impacted individuals set to receive a generous severance package. In line with its AI ambitions, Meta has been closely evaluating its workforce for some time. Zuckerberg previously dubbed 2023 the “year of efficiency,” which led to the elimination of around 10,000 jobs and the removal of management layers that no longer served a purpose.
At the same time, Zuckerberg worked on reshaping his own image as the man in command, adopting a more communicative and open dialogue about how Meta would operate moving forward. He’s now described 2025 as an “intense year,” where only the best will stay.
Meta employees are facing growing uncertainty as the company undergoes significant restructuring across various divisions. In the past week, the tech giant announced controversial plans to dismantle its diversity and equity programs, eliminate its content moderation team and relocate several positions to a new base in Texas.
Zuckerberg has also suggested that future advancements in artificial intelligence could soon allow its systems to write code without the need for engineers or trained coders, signaling a shift that may bring further challenges even for the highest-skilled positions.
Zuckerberg is confident that his relentless push for growth and adaptation to cultural trends will help Meta break free from its current stock valuation, which lags behind rivals like Amazon and Google. The next phase of digital innovation, he believes, will hinge on diversification—an area where he recently called out Apple for falling behind. Speaking to Joe Rogan last week, the tech leader said he felt Apple was unnecessarily safeguarding its approach, and that “they haven’t really invented anything great in a while.”
Meta’s push into AI innovation may involve risks, but it’s a deliberate part of the company’s strategy to embed AI into every aspect of its future plans. From smart glasses to the Metaverse and other ventures, AI is poised to become the foundation of all of Meta’s operations.
Cost-cutting and competition drive Silicon Valley layoffs
Meta’s restructuring reflects a growing trend in the tech industry, where performance metrics and cost-cutting measures are increasingly shaping growth strategies. These changes are predicted to become a regular, annual process for the tech firm. Once seen as signs of overreach and instability, mass layoffs have become routine across Silicon Valley, framed as essential in reducing costs, satisfying shareholders and maintaining competitiveness.
Industry giants like Meta, Google and Microsoft face relentless pressure to advance, prompting a sharper focus on retaining only those who demonstrably add value. This has become all too common in an industry that not long ago seemed destined for an employment boom.
Microsoft is the latest tech giant to follow Meta’s lead, announcing layoffs that will impact around 1% of its workforce, according to CNBC. Their consulting division, hit hardest by slow growth, will be the first to see cuts, including a hiring freeze for certain roles and a shift to remote sessions. These actions are aimed at streamlining operations and reducing costs, as Microsoft, like Meta, adopts a more frugal approach in its workforce strategy.
These changes are not limited to the tech industry; they reflect a pressing dilemma about how employees can navigate a future where skilled work is harder to find. Just last week, the World Economic Forum predicted that over 40% of companies worldwide expect to reduce their workforces over the next five years due to the rising impact of artificial intelligence. BlackRock, Google and TikTok are just a few of the Big Tech names that have also scaled back their employee numbers.
Adapting to change: How employees can thrive in uncertain times
Strategic hiring has become a critical tool for tech firms aiming to stay competitive, but it also creates an environment of uncertainty for employees. To navigate this, it’s crucial to focus on building agility and staying open to opportunities that align with broader future priorities. Assessing how your work impacts the bottom line is the ultimate measure of success. In a sector defined by disruption, cultivating a mindset that encourages change will ensure you are best positioned to ride out the storm and succeed.
AI innovation will continue to redefine the workforce, giving firms like Meta the tools to make tougher calls on who stays and who goes. As these advancements render some roles obsolete, the question remains: Which divisions will face the heat first?
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