Meta’s Shift to 'Permanent Efficiency Mode' Signals New Wave of Job Cuts Across Various Levels
Meta is reportedly targeting vice president-level staff in its ongoing cost-cutting efforts aimed at balancing the company's finances. According to Business Insider, CEO Mark Zuckerberg is pushing to streamline Meta’s reporting structure by introducing a stack ranking system and more stringent performance evaluations for high-level executives.
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Three sources familiar with the matter have revealed that Meta plans to reduce its number of VP-level executives. The "year of efficiency" initiative, which led to over 20,000 layoffs at Meta, now includes stricter performance reviews for top executives, resulting in additional team cuts.
In 2023, Meta had around 300 vice presidents, up from approximately 180 in previous years. Several VPs left the company in 2023 in anticipation of further layoffs. Zuckerberg's goal is to reduce the number of VPs to about 250. It is notable that there are five distinct levels within the VP title.
One source commented, "The overall goal is still to reduce the number of people in the middle and at the top while increasing the workforce at the bottom. It's getting middle-heavy and top-heavy again."
Zuckerberg stated last year that he no longer wants "managers managing managers." Consequently, Meta laid off 20,000 employees across multiple rounds, with some being offered other roles within the company. Meta conducts biannual performance reviews, with a mid-year review serving as a less formal assessment. VPs undergo "stack ranking," where their performance is compared against peers to identify top performers.
Currently, the work and impact of Meta VPs are under closer scrutiny, requiring managers to place 10% to 12.5% of their teams into lower performance categories, often leading to Performance Improvement Plans (PIPs).
"Some people are leaving due to new job opportunities, others because of performance issues. Some are struggling with the changes or getting caught up in shifting priorities," said one source.
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