Meta has begun issuing layoff notices as part of its latest cost-cutting initiative, with approximately 4,000 employees - around 5% of its workforce - expected to lose their jobs.

The cuts, which were anticipated by tech sector observers, are being framed by the firm as “performance terminations,” and will primarily target employees ranked in the bottom two tiers of the company's evaluation system.

Unlike previous layoffs, Meta will keep its offices open and refrain from making a company-wide announcement. The job reductions will be staggered across multiple regions, with employees in Asia-Pacific notified first, followed by those in Europe, the Middle East, and Africa, and finally North and Latin America. European staff in Germany, France, Italy, and the Netherlands will be exempt due to local labor regulations.

Meta’s efficiency goals

The latest round of layoffs is part of CEO Mark Zuckerberg’s ongoing drive for what he has termed a “Year of Efficiency” a strategy that has won favor with investors. Since early 2023, Meta’s stock has surged, adding more than $1 trillion to its market valuation. The company’s shift toward a leaner workforce follows similar moves by tech giants like Microsoft, Amazon, and Salesforce, all of which have trimmed staff after pandemic-era hiring sprees.

Internally, the cuts have caused unease among employees, with some expressing concern that the company is forcing managers to identify a set percentage of their team members as low performers. A leaked memo last month revealed that managers were instructed to categorize between 12% and 15% of their staff in the lowest two performance tiers. Meta’s goal is to reach 10% “non-regrettable attrition,” combining these terminations with voluntary departures.

“Even strong performers have been let go, and when you ask what happened, you’re just told they’re no longer with the company,” one employee said. Others worry that the performance-based branding of the layoffs could unfairly tarnish workers’ reputations as they seek new employment.

Affected employees will be notified through their work and personal email addresses and will lose access to company systems within an hour of receiving the notice. Severance details will be included in the same message.

Corporate restructuring and AI investment

As well as “streamlining”, Meta is also reorganizing key divisions. The company is merging its Facebook and Messenger teams under Facebook head Tom Alison, while Messenger chief Loredana Crisan transitions to Meta’s generative AI division. Additionally, Meta’s Reality Labs unit - responsible for its metaverse ambitions and virtual reality development - will be more closely integrated with the company’s core business.

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