Meta Platforms Inc. has announced plans to reduce its workforce by 5%. This decision targets the company’s lowest-performing employees. According to a report by Bloomberg, the announcement was made in an internal memo from CEO Mark Zuckerberg.
Zuckerberg’s Strategy to Improve Performance
Zuckerberg explained the reasoning behind the cuts in his memo: “I’ve decided to raise the bar on performance management and move out low performers faster. 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.”
Goal to Achieve 10% Attrition Rate
The planned reduction is part of a larger goal. Meta aims for 10% “non-regrettable” attrition by the end of this performance cycle. About 5% of the reduction is expected to happen in 2024 alone. Employees who have received performance reviews and are found to be underperforming will be affected. Meta has assured employees impacted by these changes that they will receive “generous severance.”
Restructuring Under “Year of Efficiency” Initiative
This decision comes as part of Meta’s “Year of Efficiency” initiative. The company is focused on streamlining its operations and reducing costs. Over the past year, Meta has already laid off thousands of workers as part of efforts to realign teams and boost profitability.
Policy Changes Spark Controversy
In addition to the layoffs, Meta has made several significant policy changes. One of the biggest changes involves content moderation. Meta has loosened its rules on posts related to sensitive topics like immigration and transgender rights. While the company argues this promotes “free expression,” it has faced criticism from both employees and external groups. Critics are concerned about the impact on marginalized communities.
End of Fact-Checking Program and Diversity Cuts
Meta also announced the end of its third-party fact-checking program in the U.S. This has raised concerns about the spread of misinformation on the platform. Furthermore, Meta has reduced its internal diversity programs. These cuts have sparked criticism, with many feeling it goes against the company’s previous commitment to diversity and inclusivity.