Meta CEO Mark Zuckerberg announced a significant change in the company’s performance management strategy, introducing what the company terms “non-regrettable attrition” for underperforming employees. The new approach will affect approximately 3,600 workers, representing 5% of Meta’s workforce.

“I’ve decided to raise the bar on performance management and move out low-performers faster,” Zuckerberg stated in an internal memo obtained by Bloomberg. “We typically manage out people who aren’t meeting expectations over the course of a year, but now we’re going to do more extensive performance-based cuts during this cycle.”

[Photo: Askar/Adobe Stock]

The company plans to replace the laid-off employees with new hires this year. A separate memo to managers from Meta’s HR executive emphasized that these changes aim to maintain the “strongest talent” within the organization.

Key Changes to Meta’s Performance Criteria

Meta’s performance-based strategy differs from previous layoffs attributed to cost-cutting measures. Employees will be evaluated based on their performance over the past year, with specific ratings automatically qualifying some for layoffs.

Workers rated as having “met some expectations” are directly included in the layoff list. Even employees who “met most expectations” may face termination to meet the 5% workforce reduction target. This policy applies to employees on leave or receiving only one performance review during the year.

Tech Industry Shows Similar Trends

The shift aligns with a broader trend in the technology sector. Business Insider reports that Microsoft is planning similar performance-based job cuts, while Amazon reportedly increased the use of performance improvement plans before a major round of layoffs last year.

Mollie Mueller, founder and CEO of career development platform Crew, noted the timing of this strategic shift. “It’s still early, but I’m really curious to see if this is going to become a much bigger thing in 2025,” she said in a statement. “A year or two ago, the reasons for layoffs were really pegged to the economy and COVID and changes in company strategy.”

According to Fast Company, companies have historically been cautious about linking layoffs to performance reviews due to legal considerations and the potential impact on employee morale. However, Mueller observes that the frequency of recent layoffs has reduced their stigma. 

“Over the last few years, layoffs have become so much more normalized,” she stated. “The stigma around them has gone way down just because of the volume that we’ve seen, and I’ve noticed this in speaking to leaders and employees themselves. It’s no longer bad to say I was laid off.”

Meta confirmed the impending layoffs and said the eliminated positions would be backfilled. Fast Company noted that the company’s approach resembles the strategy of former General Electric CEO Jack Welch, who ranked employees and regularly dismissed the bottom 10% of performers.

This development occurs alongside other significant changes at Meta, including modifications to its content moderation and DEI policies.