Tech giant Meta has announced plans to lay off approximately 3,600 employees, citing performance issues as the primary reason. The move, which will affect about 5% of the company's 72,000-strong workforce, was confirmed to AFP news agency on Tuesday.

Meta CEO Mark Zuckerberg stated that the decision aims to raise the bar for performance and talent within the company. “I’ve decided to raise the bar on performance management and move out low-performers faster,” Zuckerberg explained, emphasizing the need for "strongest talent" to sustain the company’s ambitions.

Restructuring and Changes

Under the new plan, employees identified as underperforming will be asked to leave and replaced with new hires. The restructuring aligns with Meta's broader strategy to streamline operations and ensure a workforce capable of meeting its evolving goals. The announcement follows earlier reports from Bloomberg and The Verge about Meta’s intent to overhaul its performance evaluation processes.

The layoffs come amid broader shifts at Meta, including the scaling back of its diversity and inclusion programs and the discontinuation of its U.S. fact-checking initiative. The company has also relaxed its content moderation policies, reflecting a pivot in its operational focus.

Financial Pressures on Meta

Meta, formerly known as Facebook, rebranded in 2021 to reflect its ambitions in developing the metaverse, an immersive virtual reality experience. However, its Reality Labs division, responsible for virtual and augmented reality projects, has faced significant financial losses.

The company previously implemented major layoffs, cutting 20,000 jobs during its "year of efficiency" in 2023. The COVID-19 pandemic initially fueled growth, but Meta has since struggled to maintain profitability in certain ventures.

Looking Ahead

Zuckerberg, now 40 and ranked as the third richest person in the world, continues to guide Meta through a period of intense scrutiny and financial recalibration. His leadership and alignment with evolving U.S. political dynamics, including a closer relationship with President-elect Donald Trump, have sparked discussions about the company’s future direction.

Despite the challenges, Meta remains committed to hiring top talent and pursuing its vision of a connected digital future, even as it trims its workforce to achieve greater efficiency.