Meta is set to reduce its workforce by around 5%, which translates to more than 3,000 employees, as part of a strategic realignment towards artificial intelligence and advanced technology. In an internal memo released this week, CEO Mark Zuckerberg informed staff that the company will “phase out low-performers” and will consistently prioritize growth.
Zuckerberg elevates performance expectations before growth transformation
“I’ve made the decision to enhance our performance management standards,” Zuckerberg communicated to staff this week, as reported by Bloomberg. “Historically, we have managed individuals out who fail to meet expectations over the span of a year, but now we’ll initiate more extensive performance-based layoffs during this cycle, aiming to refill these positions in 2025,” the memo allegedly states.
Employees in the U.S. impacted by these layoffs are likely to be notified by February, with international personnel to be informed subsequently. The layoffs will specifically target individuals who have recently gone through an internal performance evaluation, with all affected staff guaranteed a sizeable severance package. In line with its AI goals, Meta has been scrutinizing its workforce for a while. Zuckerberg had previously termed 2023 as the “year of efficiency,” resulting in the elimination of approximately 10,000 jobs and removing unnecessary management layers.
Concurrently, Zuckerberg has worked to reconstruct his public persona as the authoritative leader, fostering a more transparent dialogue concerning Meta’s future operations. He has now characterized 2025 as an “intense year,” where only those performing at the highest levels will remain.
AI will be integral to Meta’s future strategy
Meta employees are grappling with increasing uncertainty as the company undertakes substantial reorganization across various sectors. Recently, the tech titan disclosed contentious plans to disband its diversity and equity initiatives, dissolve its content moderation team, and shift several roles to a new office in Texas.
Zuckerberg has also implied that coming breakthroughs in artificial intelligence may enable its systems to create code independently of human engineers or coders, indicating a transformation that could pose further challenges even for the most skilled positions.
Believing that his unwavering drive for growth and responsiveness to cultural shifts will enable Meta to rise above its current stock valuation, which trails that of competitors like Amazon and Google, Zuckerberg sees diversification as key to the next wave of digital progress—an area where he recently indicated Apple is falling behind. In a conversation with Joe Rogan last week, he expressed his view that Apple is overly cautious and that “they haven’t really produced anything remarkable in a while.”
While Meta’s focus on AI innovation may come with risks, it is a calculated element of the company’s strategy to incorporate AI into every facet of its future endeavors. From smart glasses to the Metaverse and beyond, AI is set to be the cornerstone of all of Meta’s initiatives.
Cost-reduction and competition fuel layoffs in Silicon Valley
Meta’s restructuring mirrors a widespread trend in the technology sector, where performance standards and cost-control measures increasingly dictate growth strategies. These alterations are expected to become a frequent, annual occurrence for the tech firm. Once perceived as indicators of excess and uncertainty, mass layoffs have evolved into a customary practice throughout Silicon Valley, depicted as necessary for cost reduction, appeasing shareholders, and retaining competitive edge.
