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In the volatile technology field, major companies such as Meta and Microsoft continue to strategically reduce staff, targeting “low performers” as the industry continues to restructure.
Mark Zuckerberg, Meta Photographer CEO: David Paul Morris/Bloomberg
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important facts
Meta is cutting its workforce by about 5%, or 3,600 employees, through targeted performance reviews, according to an internal memo obtained by Bloomberg.
CEO Mark Zuckerberg said in a memo to staff that the company would “fire lower performers faster.”
The social media giant plans to continue hiring new talent to replace employees who left this year.
Affected U.S. workers will be notified of their employment status on February 10th. Foreign employees will then be notified.
Additionally, Microsoft is laying off about 1% of jobs across various departments, CNBC reported.
A company spokesperson told the news site that “appropriate action will be taken” if an employee’s performance is poor.
important quotes
“Meta is working on building the most important technologies in the world: AI, glasses as the next computing platform, and the future of social media. This year is going to be intense, and we’re making sure we have the best talent on our team.” “We want to align this with our customers,” Zuckerberg said in an internal memo to employees.
Main background
Meta and Microsoft have made significant job cuts in recent years. In 2022, Meta eliminated approximately 11,000 positions as part of a major restructuring effort. The following year, which Zuckerberg called “the year of efficiency,” Meta cut another 10,000 positions. Microsoft also reduced its workforce by 10,000 in 2023 while consolidating office space. After acquiring Activision Blizzard for $75.4 billion, Microsoft’s gaming division will cut 1,900 positions in early 2024 to streamline operations and eliminate redundancies.
What to watch out for
Big technology companies like Meta and Microsoft often serve as industry bellwethers, setting workforce and strategic trends that small businesses and startups later emulate. When these technology giants implement significant changes, such as performance-based layoffs, hiring freezes, and cost-cutting measures, other organizations typically follow suit, basing these moves on market conditions and operational efficiency strategies. It is considered as a signal. Their actions can quickly ripple throughout the technology ecosystem, impacting company-wide approaches to hiring practices and talent management across industries.
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