The layoff season is not over in Meta yet. As per reports, the Mark Zuckerberg-owned company is planning to lay off more employees in the coming week.
Meta had previously laid off close to 12,000 employees. Meta (previously known as Facebook) has given “subpar ratings” to thousands of employees during its latest performance review, which hints at more layoffs in the coming months.
As per Bloomberg News, the second round layoffs can be done to meet financial goals. The report states that Meta, which used to make a lot of money from advertising, but now wants to focus on the “metaverse”. The company needs to save money, so they’re planning to cut jobs. These job cuts are not related to another thing called “flattening” that the company is doing.
The people who know about this plan to cut jobs say that it’s being done to meet financial goals, and that directors and vice presidents are being asked to make lists of people who can be let go. The company hasn’t said anything about this publicly.
As per people familiar with the matter, the upcoming round of layoffs may be completed within the next week. The individuals working on the plan are striving to have it ready before the imminent parental leave of Chief Executive Officer Mark Zuckerberg, who is expecting his third child. One source mentioned that they hope to finalize the plan before his departure.
Previously, managers at Meta gave around 10 per cent of employees a rating of “meets most”, which is the second-lowest rating at the company. The lowest rating, “meets some”, is not something that the company gives quite often. The ratings have apparently been given to incentivize high-quality work and long-term thinking, according to a company spokesperson.
The Wall Street Journal reported that the senior officials at Meta expect that the low ratings will lead to more employees leaving the company in the coming weeks. If not enough employees leave voluntarily, the company may consider another round of layoffs.
The ratings may have a negative impact on employees, as many may take them as a sign to look for new job opportunities.Meta has reportedly been planning to reduce its headcount further to maintain efficiency. Zuckerberg said that it wants 2023 to be the year of efficiency for Meta. This has caused some staff members to complain that “zero work” is getting done because managers have been unable to plan their coming workloads.
In response to these reports, Meta has stated that it is working on flattening its organizational structure and removing some layers of middle management to make decisions faster. It is also deploying AI tools to help its engineers be more productive. However, Meta did not comment on the reports about upcoming layoffs.
It appears that Meta’s recent performance review may be a prelude to more layoffs at the company. The low ratings given to some employees may result in more of them leaving the company, which could potentially result in another round of layoffs.