Meta announces layoff of 3,600 employees

Meta plans to layoff around 3,600 employees identified as underperformers and replace them with new hires, according to an internal memo reported by Bloomberg on Tuesday. The company, which owns Facebook, Instagram, and WhatsApp, confirmed to AFP that CEO Mark Zuckerberg’s decision will impact 5% of its workforce after staff will be layoff.

As of September, Meta employed approximately 72,400 people.

“I’ve decided to raise the bar on performance management and move out low-performers faster,” Zuckerberg stated.

The CEO explained that these performance-based layoffs aim to ensure the company maintains “the strongest talent” while allowing for new hires.

Performance-related dismissals are common among major U.S. corporations. Last week, Microsoft also announced similar cuts, affecting less than 1% of its workforce, according to Business Insider.

These layoffs at Meta come as part of broader changes ahead of Donald Trump’s return to the White House on January 20.

Meta has been undergoing significant restructuring efforts, aiming to streamline operations and focus on strategic priorities. This latest round of layoffs is part of a broader shift towards enhancing efficiency and competitiveness in the tech industry.

In recent months, Meta has faced increasing pressure to deliver stronger financial performance and adapt to evolving market demands. The company is also doubling down on its investments in the metaverse and artificial intelligence, areas that Zuckerberg has emphasized as key to Meta’s future growth.

Analysts believe that these performance-based layoffs reflect a growing trend among tech giants to optimize their workforce amidst economic uncertainty and heightened competition. By focusing on retaining top talent and bringing in new expertise, Meta aims to position itself better for long-term success in the rapidly changing digital landscape.

Despite the layoffs, Meta continues to invest heavily in its core platforms and new initiatives, signaling its commitment to innovation and maintaining its leadership in the tech industry.

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