Meta, the parent company of Facebook, posted its first decline in revenue in the quarter ended June 30, amidst growing competition from rival TikTok. To combat these pressures, Meta plans to cut expenses by at least 10% in the coming months, in part through staff reductions, The Wall Street Journal reported, citing people familiar with the company’s plans.
But instead of doling out pink slips, Meta is reorganizing departments and giving affected employees a limited window—30 days—to apply for other roles within the company.
While this practice has long-existed at the Menlo Park-based firm, it was typically used to weed out underperformers. However, now “workers with good reputations and strong performance reviews are being pushed out on a regular basis,” the Journal noted.
“Many teams are going to shrink so that we can shift energy to other areas inside the company” — Mark Zuckerberg, Meta’s CEO, in July 2022