In the volatile tech sector, major players like Meta and Microsoft are continuing their strategic workforce reductions, targeting "low performers" amid ongoing industry restructuring.
Mark Zuckerberg, CEO of Meta Photographer: David Paul Morris/Bloomberg
Meta is reducing its workforce by approximately 5%—3,600 employees—through targeted performance evaluations, according to an internal memo obtained by Bloomberg.
CEO Mark Zuckerberg stated in the note to staff that he intends to “move out low performers faster.”
The social media giant plans to subsequently recruit new talent to replace the departing employees this year.
Impacted workers within the United States will receive notification about their job status on February 10, with international employees being informed after that.
Additionally, Microsoft is terminating around 1% of jobs across various departments, CNBC reported.
A spokesperson for the company told the news publication that when employees underperform, “we take the appropriate action.”
“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,” Zuckerberg said in his internal memo to employees.
Meta and Microsoft have undergone significant workforce reductions in recent years. In 2022, Meta eliminated approximately 11,000 positions as part of a major restructuring effort. The following year, dubbed the "Year of Efficiency" by Zuckerberg, saw Meta cut an additional 10,000 roles. Microsoft also trimmed its workforce by 10,000 employees in 2023 while consolidating office space. Following its $75.4 billion Activision Blizzard acquisition, Microsoft's gaming division eliminated 1,900 positions in early 2024 to streamline operations and reduce redundancies.
Large tech companies, like Meta and Microsoft, often serve as industry bellwethers, setting workforce and strategic trends that smaller companies and startups subsequently emulate. When these tech giants implement significant changes—such as performance-based layoffs, hiring freezes or cost-cutting measures—other organizations typically follow suit, viewing these moves as strategic signals about market conditions and operational efficiency. Their actions can quickly ripple through the tech ecosystem, influencing hiring practices and overall corporate approach to talent management across the sector.