Meta Initiates 5% Workforce Reduction as Part of AI-Focused Overhaul

Meta Initiates 5% Workforce Reduction as Part of AI-Focused Overhaul

Tech giant Meta, the parent company of Facebook, Instagram, and WhatsApp, has announced plans to reduce its workforce by 5%, targeting employees classified as low performers, as stated in an internal memo initially reported by Bloomberg. CEO Mark Zuckerberg confirmed this strategy, which is expected to impact approximately 3,600 employees. He described the initiative as a way to “elevate performance standards and expedite the removal of underperformers.”

Meta typically manages employees not meeting expectations over the course of a year. However, in the latest memo, Zuckerberg indicated that the company will now implement more comprehensive performance-related cuts during this cycle. Additionally, Meta plans to fill roles vacated by departing employees—who, according to Zuckerberg, will receive a “generous” severance package—with new hires later in the year.

As per a report by AFP, employees in the United States will be notified about their employment status by February 10, while international staff will receive updates at a later date. Zuckerberg shared that some underperforming employees may be retained if there is optimism regarding their potential contributions in the future.

In a recent episode of The Joe Rogan Experience podcast, Zuckerberg revealed that Meta, along with other leading technology firms, is developing AI systems to handle complex coding tasks currently managed by human engineers. He disclosed plans to replace mid-level software engineers with artificial intelligence by 2025.

Meta is not the only company undergoing restructuring due to advancements in AI technology. Industry leaders such as Microsoft and Salesforce have also announced job cuts as part of a broader trend in the tech sector.

Salesforce CEO Marc Benioff, speaking in a 20VC podcast with Harry Stebbing, indicated that the company’s business plan for 2025 includes a significant reduction in the hiring of software engineers. He noted that Agentforce, Salesforce’s proprietary AI platform, is anticipated to achieve more than 30% adoption across engineering teams.

Benioff stated, “Our engineering productivity has risen by 30%, which indicates we presently do not require additional software engineers. AI has fundamentally transformed our work processes.” While Salesforce plans to decrease its support engineering roles, he mentioned the company’s intention to expand its sales workforce by 1,000 to 2,000 employees.

Following the introduction of Agentforce, Benioff highlighted that Salesforce successfully closed 200 deals in just five days during the quarter ending in October. The company now aims to complete thousands of Agentforce deals within the upcoming quarter.

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