(AP Photo/Nick Wass, File)
Social media giant Meta reportedly rated thousands of its tech workers as being subpar, according to the Wall Street Journal. The low-performance ranking is considered within the tech community as a foreshadowing of upcoming layoffs. Bonuses may be cut, and CEO Mark Zuckerberg plans to slow down hiring engineers by “at least 30%” in 2023.
This tactic will goad people into leaving by attrition and save the company from paying large severance packages, as CEO Mark Zuckerberg is focused on implementing cost-cutting initiatives. If these measures don’t influence people to leave and seek other opportunities, there may be another wave of layoffs.
Low-Performance Evaluations
About 10% of employees were ranked as underperforming by Meta managers. In a memo to his staff, Zuckerberg announced in November that he would be laying off 11,000 people, representing around 13% of his workforce.
The chief executive, in a town hall meeting, warned employees about the challenging economic environment and the need to slow down hiring and cut costs. As part of the new fiscally responsible plans, the social media giant will increase the expectations for its employees. Zuckerberg offered a veiled threat, "I think some of you might decide that this place isn't for you, and that self-selection is okay with me. Realistically, there are probably a bunch of people at the company who shouldn't be here."
According to the Information, Meta's vice president of remote presence Maher Saba told managers to identify people on their team who "need support" and "move to exit" poor performers "who are unable to get on track." The Washington Post reported that white-collar tech workers are worried about being placed on performance improvement plans, ultimately leading to layoffs.
Middle Managers
Middle managers at Meta could be targeted for layoffs. In an earnings call, Zuckerberg pointed out the proliferation of managers within the organization, claiming it creates unnecessary bloat and spiraling costs. According to reporting by the Verge, Meta is making 2023 the “year of efficiency,” which is a socially acceptable term for getting rid of highly paid managers that have built up large fiefdoms without adding value.
Zuckerberg called out the inefficiencies within the large social media platform, which is also happening at other large tech companies, stating, “I don’t think you want a management structure that’s just managers managing managers, managing managers, managing managers, managing the people who are doing the work.”
In this new power dynamic shift, the tech sector is veering away from kowtowing to its highly compensated employees to cutting costs and appeasing shareholders and investors. The new model has won the approval of Wall Street, as the price of Meta’s stock price jumped 20% on the news of the social media company’s new austere, cost-cutting plan.
Low Performers
Getting laid off can be a traumatic event. The loss of a job and concerns about financial insecurity cause stress and anxiety to affected workers and their families. To compound the problem for people in between jobs, before the wave of layoff announcements, companies like Meta, Salesforce, Amazon
Being deemed a low performer—a pejorative term that has a connotation of not meeting expectations and being considered in the lower end of the workforce—is a red flag signaling you may be selected for the next round of downsizing. The people labeled as low performers are put on performance improvement plans, which leaves them vulnerable to the chopping block. Others are subjected to the much-debated stack-ranking process. If you are measured as a low performer and nudged out the door, finding a new job may be more challenging as you enter the competitive job market with a proverbial scarlet letter on your chest.
