Meta, the parent company of Facebook, is set to carry out a company-wide layoff affecting about 5% of its workforce, or nearly 4,000 employees. This move, which was revealed through internal memos reviewed by Reuters, is part of the company’s strategy to prioritize artificial intelligence and enhance operational efficiency.
The layoffs will begin with notifications sent to impacted employees starting at 5 a.m. local time on Monday across various countries, including the U.S., according to a post written by Janelle Gale, Meta’s Head of People. However, employees in Germany, France, Italy, and the Netherlands will be spared from the cuts due to local regulations. Notifications for workers in over a dozen other countries across Europe, Asia, and Africa will be delivered between February 11 and February 18.
Unlike prior rounds of layoffs, Meta has decided to keep its offices open today and will not be issuing any additional updates regarding the reasons for the decision, Gale clarified in her post. Additionally, in a separate memo, Meta’s VP of Engineering for Monetization, Peng Fan, asked staff to expedite the hiring process for critical roles, such as machine learning engineers.
The technology industry’s wave of layoffs began in response to overhiring during the COVID-19 pandemic. Companies rapidly expanded their workforces to meet a surge in demand for digital products and services. However, as the pandemic’s impact subsided and demand softened, many firms found themselves overstaffed, resulting in substantial job cuts. In 2023 alone, over 260,000 tech workers worldwide were laid off.
While Meta has managed to stay profitable through periods of aggressive hiring and substantial investments, it is now under pressure to keep up with competitors in the rapidly advancing field of generative AI. Analysts anticipate that staying competitive will require significant investments in AI infrastructure, which has led to the company seeking cost-saving measures elsewhere.
This move is consistent with CEO Mark Zuckerberg’s “Year of Efficiency” initiative, which began in 2023 and is expected to continue throughout 2025. This initiative reflects a broader industry trend of pursuing leaner operations following the pandemic-era hiring boom.
Experts predict that layoffs may continue to rise across the tech industry in the coming months, potentially driving the unemployment rate to 5% by the end of the year. Advancements in AI and automation are contributing to this trend, as certain roles become redundant, prompting companies to restructure and downsize their teams.
The layoffs at Meta are expected to target employees with the lowest performance ratings, specifically those who received “Met Some” or “Did Not Meet” evaluations in the company’s performance review system. Managers are tasked with identifying 12% to 15% of employees in these categories. Meta’s goal is to reach a 10% “non-regrettable attrition” rate, combining the current round of layoffs with earlier departures.
Employees affected by the layoffs will be notified via both their work and personal email addresses. They will lose access to company systems shortly after receiving the news, and severance details will be included in the notification email. The notifications will be staggered across time zones, with employees in Asia Pacific being notified first, followed by those in Europe, the Middle East, and Africa, and finally North and Latin America.
In addition to the layoffs, Meta is making changes within its teams. The company is merging its Facebook and Messenger teams under Facebook Chief Tom Alison, with Messenger head Loredana Crisan moving to the generative AI group. Meanwhile, Meta’s Reality Labs division, which has incurred nearly $60 billion in losses since 2020, is being integrated more closely with the main business.
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