Meta, formerly known as Facebook, will reduce its workforce by approximately 5 percent by letting go of its "lowest performers" and plans to recruit for the affected roles later this year, the company announced on Tuesday.
CEO Mark Zuckerberg has cautioned employees about the likelihood of additional job cuts this year as part of efforts to "raise the bar" on performance management, Reuters reported.
Newsweek reached out to Meta via email for comment.
Meta Announces Layoffs For 5 Percent Of Company
Like many technology companies, Meta has invested billions of dollars into artificial intelligence-related infrastructure, anticipating an increase in expenses this year as a result.
The recently announced cuts come after two restructuring efforts by Meta in recent years.
In 2022, the social media company eliminated approximately 11,000 jobs. Zuckerberg designated 2023 the "Year of Efficiency," and Meta announced plans to cut around 10,000 additional roles.
Last week, the company discontinued its U.S. fact-checking program and eased restrictions on discussions about contentious topics like immigration and gender identity, responding to conservative pressure in anticipation of President-elect Donald Trump's return to the White House.
Mark Zuckerberg's Internal Meta Memo
Below is Zuckerberg's internal memo, reported by multiple media outlets:
"Meta is working on building some of the most important technologies of the world. AI, glasses as the next computing platform and the future of social media. This is going to be an intense year, and I want to make sure we have the best people on our teams.
"I've decided to raise the bar on performance management and move out low performers faster. 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, with the intention of back filling these roles in 2025. We won't manage out everyone who didn't meet expectations for the last period if we're optimistic about their future performance, and for those we do let go, we'll provide generous severance in line with what we provided with previous cuts.
"We'll follow up with more guidance for managers ahead of calibrations. People who are impacted will be notified on February 10 or later for those outside the U.S."
What's Happening With Meta's Stock?
Meta's stock was down 2.2 percent on Tuesday to $595 a share. Meta stock dropped by over 4 percent at the market opening on Monday, reaching $478.7—its lowest level in almost a month.
The recent stock slump follows the Supreme Court's decision not to hear Meta Platforms' appeal to avoid a multi-billion-dollar class action lawsuit. Advertisers have accused the parent company of Facebook and Instagram of overcharging by inflating the audience numbers their ads could reach. The justices rejected Meta's appeal of a lower court's ruling that allows advertisers to pursue damages as a group over Meta's claims concerning the "potential reach" of their ads.
According to Reuters, advertisements account for most of Meta's revenue, which amounted to $116.1 billion in the first nine months of 2024.
What Apps Does Meta Own?
Meta Platforms owns several major apps and platforms. These include:
- Facebook: The original social media platform that started it all
- Instagram: A popular photo and video-sharing app
- WhatsApp: A widely used messaging app
- Messenger: A messaging app that operates in conjunction with Facebook
- Oculus: A virtual reality platform and product line known for VR headsets
- Workplace: A business communication platform
- Portal: Video communication devices
- Horizon: A series of virtual reality environments and apps, including Horizon Worlds and Horizon Workrooms
These apps and platforms form a substantial part of Meta's ecosystem, serving various communication, social networking and virtual reality needs.
How Many Employees Does Meta Have?
According to Reuters, as of September 30, Meta employed over 72,000 individuals.
How Much Is Mark Zuckerberg Worth?
According to Forbes' Real Time Billionaires List, Zuckerberg's net worth is $204.1 billion, making him the third-richest person in the world behind Elon Musk ($417.5 billion) and Jeff Bezos ($231 billion).
Zuckerberg's net worth has dropped $6.2 billion, or 2.95 percent, since 5 p.m. Monday, the previous trading day, Forbes reports.
According to a recent SEC filing, Zuckerberg sold Meta shares worth about $7.98 million on Friday, January 10. The shares were sold at prices ranging from $600.48 to $629.08 per share.
In April, Zuckerberg's net worth declined by over $22 billion, or 13 percent, when the company's share prices fell.
In 2023, Mark Zuckerberg received the lowest salary of all Meta employees, earning just $1. However, the CEO secured $24.4 million in "other compensation," with a majority of those funds allocated to Zuckerberg's security expenses and usage of private aircraft, according to Fortune.
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