In a significant move to enhance efficiency and performance management, Meta Platforms Inc. has announced plans to cut approximately 5% of its workforce, targeting its lowest performers. This decision, detailed in an internal memo from CEO Mark Zuckerberg, is part of the company's ongoing efforts to streamline operations and focus on key technological advancements. The layoffs are expected to affect around 3,600 employees, given Meta's workforce of over 72,000 as of September 30, 2024.

Zuckerberg emphasized the need to 'raise the bar on performance management and move out low-performers faster,' indicating a shift towards more extensive performance-based cuts during this cycle. The company plans to backfill these roles in 2025, aligning with its long-term strategic objectives. This approach follows Meta's 'year of efficiency' in 2023, during which it eliminated 10,000 positions.

The CEO highlighted the company's focus for the upcoming year, describing it as an 'intense year' centered on advancements in AI, smart glasses, and the future of social media. Meta aims to achieve 10% 'non-regrettable' attrition by the end of the current performance cycle, which includes approximately 5% from the previous year. Employees affected by the layoffs will be notified by February 10, with those outside the U.S. receiving notifications later. The company has assured affected employees of 'generous severance' packages.

This latest round of cuts underscores Meta's commitment to streamlining its workforce and focusing on high-impact areas, particularly as it navigates a rapidly evolving tech landscape. While the immediate changes may impact morale, the company remains steadfast in its vision to lead advancements in AI and immersive technologies. The broader market will watch closely as Meta continues to recalibrate its workforce while pursuing aggressive innovation goals.

In addition to the layoffs, Meta has made several other operational changes, including dismantling its DEI-focused team and eliminating diversity programs in its hiring process. The company also recently made changes to its content moderation policies, removing third-party fact-checkers in favor of a community notes model. These developments follow a series of layoffs in March 2023, when Meta let go of 10,000 employees, part of Zuckerberg's push for the company's 'year of efficiency.'

The tech industry has been witnessing a trend of workforce reductions, with companies like Microsoft, BlackRock, and others also announcing layoffs in 2025. Meta's move is seen as part of a broader effort to redirect investments into artificial intelligence technology, with the company pouring billions into AI-related infrastructure.

As Meta continues to navigate these changes, the company's stock experienced a slight dip following the announcement, though it remains up significantly over the last 12 months. The focus on performance-based cuts and the planned backfilling of roles in 2025 signal Meta's long-term confidence in its growth trajectory and innovation goals.