Meta Platforms Inc. META employees find themselves in a nerve-wracking state as the company’s “Year of Efficiency” is no longer a temporary scheme, stirring worries about possible layoffs.
What Happened: After an extensive assessment of individual employee performance throughout 2023, the culmination of reviews has left numerous employees unsettled about their job stability, as reported by Business Insider, citing two sources familiar with the situation.
While most employees are anticipated to retain their roles, the ongoing restructurings within the company have generated an aura of uncertainty. CEO Mark Zuckerberg’s decision to transform the “Year of Efficiency” into a permanent fixture has added to the unease.
“Meta has a history of frequent reorganizations, shifting personnel, and dissolving teams,” a third insider familiar with the corporation mentioned. “Nevertheless, the current environment is fraught with heightened concerns of job cuts, making it challenging to secure alternate employment.”
Despite the recent financial triumphs, including an all-time high stock price and enlarged employee bonuses, the specter of layoffs lingers. With a workforce reduction of 22% over the past 18 months, further job eliminations are projected due to ongoing reshuffling at Instagram and Reality Labs, among other sectors.
Employees impacted by these reorganizations are afforded a three-month window to secure a new position within Meta. Failure to do so will precipitate job loss. Additionally, employees receiving lower performance appraisals are provided a three-month severance package to exit the company without the necessity of a formal Performance Improvement Plan (PIP) process.
Why It Matters: In the previous quarter, the Zuckerberg-led company unveiled revenues totaling $40.11 billion, reflecting a 25% surge from the previous year. This surpassed the Street’s consensus estimate of $39.17 billion as per data from Benzinga Pro.
“We experienced a robust quarter with sustained growth in our community and business,” affirmed Meta CEO. “Substantial strides have been made towards our vision of advancing AI and the metaverse.”