Mark Zuckerberg has reportedly begun warning Meta staff of potential job cuts.
It sounds like Meta's Mark Zuckerberg has been drinking from the same water fountain as Elon Musk, as the Meta CEO is tipped to make some divisive changes to its platforms. Similar to when Musk took over Twitter in October 2022 and came in with swathes of cuts and changes, Zuckerberg is apparently looking at a very different future for Facebook, Instagram, and WhatsApp.
Originally founded as TheFacebook in 2004, it evolved into the Facebook we know in 2005, and has continued evolving ever since.
Zuckerberg has already tried to capture the future with a $46 billion investment into the controversial Metaverse, and in his latest headline-grabbing move, he's rolling back Meta's third-party fact-checkers.
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Alongside appointing Trump ally Dana White to the Meta board, he's accused of making Facebook more like Musk's rebranded X with his new free speech initiative. There are warnings that jobs will be lost as Zuckerberg attempts to use AI to streamline things, but these aren't the only areas where he's planning to slash his human workforce.
In a memo obtained by Bloomberg, Zuckerberg is said to have addressed Meta employees and suggested that 5% of its staff could be shown the door via 'performance-based terminations'.
Even though there are plans to hire more to fill these roles, the news is sure to send shockwaves through the ranks of Meta.
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In the memo, Zuckerberg reportedly wrote: "I’ve decided to raise the bar on performance management and move out low-performers faster."
As Bloomberg notes, Meta employed around 72,000 people as of September 2024. A 5% cut would equate to about 3,600 jobs.
Zuckerberg's memo continues: "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." Only those who've been with Meta long enough for a performance review will be on the chopping block.
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The current performance cycle is expected to end in February, although those close to Meta who made these claims asked not to be named.
Those affected in the USA will reportedly be informed by February 10, with other territories finding out at a later date.
Trying to take the sting out of the news, Zuckerburg reassured those who lose their jobs will be given a ‘generous severance' that aligns with previous cuts.
In 2023, Zuckerberg referred to it as Meta's 'year of efficiency' and vowed to axe 10,000 jobs.
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Things have changed since then, and in a note supposedly sent to managers, he says these performance-based cuts are to future-proof the company with the 'strongest talent' that will help 'bring new people in'.
Bloomberg concludes that Meta's headcount is tipped to be down by 10% at the end of its current performance cycle, including an extra 5% reduction from attrition in 2024.
This looks like a key time for Meta, but with Donald Trump heading back into the White House and the Meta CEO on much better terms with the returning POTUS, it could also be a time that Meta's platforms get a helping hand from the incoming administration.