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Meta's performance-based cuts could kick off a wider trend in tech

Jan 15, 2025 - businessinsider.com
The article discusses Meta's strategy to improve efficiency by cutting 5% of its workforce, focusing on low performers. CEO Mark Zuckerberg aims for a 5% non-regrettable attrition rate, targeting employees with performance ratings of "Met Most Expectations" or worse. The process involves evaluating employees and making quick decisions, with US-based staff learning about cuts by February 10. This approach may become an annual tradition at Meta and could influence other companies, as performance-based cuts are not uncommon in the tech industry.

Additionally, the article covers various news highlights, including layoffs at Microsoft, changes in executive ranks at JPMorgan and BlackRock, and the economic impact of Los Angeles wildfires. It also touches on TikTok's uncertain future in the US, Apple's market challenges despite launching AI iPhones, and business updates such as Starbucks' new refill policy and Trump's proposed external revenue service. Other news includes Biden's executive order on AI infrastructure and earnings reports from major financial institutions.

Key takeaways:

  • Meta plans to cut 5% of its workforce, focusing on low performers, as part of an "intense year" strategy.
  • JPMorgan and BlackRock are undergoing executive changes, raising questions about leadership succession.
  • Microsoft is laying off employees across multiple divisions, separate from performance-related cuts.
  • President-elect Donald Trump announces plans for an "external revenue service" to collect tariffs and revenue from foreign nations.
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