Zuckerberg Drops 5% of Meta Workforce to Streamline Operations, Elevate Performance

Mark Zuckerberg, CEO of Meta and indeed stirring the pop across most forms of social media, be it on Joe Rogan's podcast, his platform, or politically, is continuing the 2024 trend of cutting tech jobs and announced plans to lay off approximately 5% of the company's workforce, targeting employees identified as "low performers." The reason? For Mark and Meta, it is part of an effort to elevate performance standards and streamline operations; in other words, they optimize operations with AI. 

With Meta employing over 72,000 individuals, the 5% reduction equates to approximately 3,600 employees.

Historically, Meta has given underperforming employees a year to improve, so this new tactic seems rushed and impersonal. It leaves little to no room for improvement based on whatever metrics they hold their employees to.

Though to give Zuck the benefit of the doubt, Reuters reported that Meta plans to hire "new talent" for the affected roles, eluding to a focus on human resources rather than direct AI substitution focused more on product development and enhancing user experiences.

But it's not just Meta. Companies across many sectors are cutting their workforce, most likely adjusting to the exponential growth of tech/AI and the shifting winds of economic conditions, especially with President-elect Trump about to take office in a few days. For instance, Microsoft is set to continue its implementation of performance-based layoffs through 2025, focusing on underperforming employees. Similarly, BlackRock has cut approximately 200 employees to realign its resources with strategic goals. BP aims to cut around 4,700 staff members and 3,000 contractors to streamline operations. 

This trend - not great for workers and the labor market - is likely linked to excessive spending from the early days of COVID-19, showing how long the effects of "free money" and low interest can take to shake off.