Meta Platforms Inc. (META), a parent company of Facebook, recently assigned subpar ratings to thousands of its workers as part of their performance reviews, according to a report from The Wall Street Journal, citing people familiar with the matter. The company scrapped one bonus metric, a step it’s taking after Chief Executive Mark Zuckerberg said 2023 would be a “year of efficiency,” the people said. As a result, Meta is expecting more workers to leave in the coming weeks, but it may conduct another round of job cuts if not enough employees opt to do so.
Meta recently laid off about 11,000 workers, equal to 13% of its workforce. This comes as the company is aiming to create a “goal-based culture of high performance”, according to a Meta spokesman. The performance reviews are meant to incentivize long-term thinking and high-quality work, while helping employees get actionable feedback.
The news of the performance reviews has had a negative effect on the company’s stock, which was down 1.2% premarket and has fallen 17% in the last 12 months. Comparatively, the S&P 500 (SPX) has fallen 7% in the same time frame.
The news of the performance reviews has caused many to speculate that more job cuts may be on the way for Meta. This could have a wide-ranging impact on the tech industry, as Meta is a major player in the space. The company has been at the forefront of many new and innovative technologies, and its influence can be seen in many different aspects of the industry.
The job cuts could also have a negative effect on the job market as a whole. Many of the positions that Meta would be cutting are likely to be highly sought after, and the loss of these positions could have a ripple effect throughout the industry. This could lead to increased competition for the remaining positions, making it more difficult for those seeking employment in the tech industry.
The job cuts could also have a negative effect on the economy as a whole. Meta is a major contributor to the tech industry, and the loss of its employees could lead to a decrease in the overall productivity of the industry. This could, in turn, lead to a decrease in economic growth.
The news of Meta’s performance reviews and the speculation of further job cuts is concerning for the tech industry and the economy as a whole. While the company has not yet announced any further job cuts, the possibility of them cannot be ignored. It remains to be seen how Meta will respond to the situation, and how the tech industry and the economy will be impacted.