Employees at Meta Platforms Inc. (NASDAQ: META) are navigating a tumultuous period as the company’s “Year of Efficiency” undergoes a transformation into a permanent strategy, instilling fears of potential layoffs among its workforce.
Ongoing Uncertainty: The technology giant has recently culminated an extensive evaluation of individual employee performance for 2023, culminating in concluded reviews that have left many employees anxious about their job security, as per a report by Business Insider, citing inside sources.
Evolution to Permanence: Originally introduced as a temporary initiative, the “Year of Efficiency” has now been integrated as a lasting fixture within the company’s operations under the helm of CEO Mark Zuckerberg.
“Meta has a history of organizational restructuring, including team relocations and eliminations,” an insider shared. “However, the current environment is saturated with concerns of layoffs, making it challenging for employees to secure alternative positions.”
Despite Meta’s recent financial prosperity, evidenced by soaring stock prices and increased employee bonuses, the specter of layoffs looms large.
Over the past 18 months, Meta has already downsized its workforce by 22%, with ongoing reorganizations across divisions such as Instagram and Reality Labs expected to prompt further reductions.
Affected employees are granted a three-month window to secure new roles within Meta. Failure to do so will result in job termination.
Workers who receive subpar performance ratings are being presented with three months of severance package to exit the company without undergoing the arduous formal Performance Improvement Plan (PIP) process, according to the report.
Financial Landscape: Despite upheavals, Meta, under Zuckerberg’s stewardship, announced fourth-quarter revenue of $40.11 billion last month, reflecting a 25% year-over-year surge. This figure surpassed the Street consensus of $39.17 billion, as per data from Benzinga Pro.
“We had a strong quarter as both our community and business continued to expand,” Meta’s CEO remarked. “Significant progress has been made towards our vision of advancing AI and the metaverse.”