According to a source, Facebook’s corporate parent Meta has implemented a “30 day list” that demands some employees to either find other employment within the firm or quit in order to save costs as its stock price plummets.
The ominous ultimatum for some employees was issued amid reports that CEO Mark Zuckerberg and senior executives want to reduce costs by 10% or more. Employees on the “30 day list” who are unable to find jobs are “subject to termination” as Meta reorganizes some areas, according to the Wall Street Journal.
Sources told the Wall Street Journal that the current cost-cutting drive is forcing out staff with a history of outstanding performance, whereas Meta has previously used the strategy to fire low-performing personnel.
Tracy Clayton, a spokesman for Meta, declined to comment when the Journal asked about the number of employees who had been put on the “30 day list” or were at risk of being fired. According to Clayton, the approach really aids Meta in keeping hold of brilliant workers who they might otherwise lose through restructuring.
Clayton told the newspaper, “We’ve been open about the need for our teams to change to meet these difficulties.
Clayton also cited remarks made by Zuckerberg in July of last year, following the announcement of Meta’s first-ever quarterly revenue decline. The user base of the business has been stagnant recently despite fierce rivalry from rivals like TikTok.
Zuckerberg stated that Meta planned to “steadily reduce personnel growth over the next year” and acknowledged that “many teams are going to shrink” at the time.
According to Zuckerberg, “this is a time that needs more intensity, and I want us to accomplish more with less resources.” “We’re in the process of setting higher goals for several of our initiatives right now.”
Although sources told the Journal that employment cutbacks to far could be a “prelude to greater cuts,” Meta has not yet joined other well-known tech companies in openly performing layoffs.
As the corporation navigates a challenging shift toward the metaverse, Zuckerberg’s personal net worth has shrunk by an astounding $71 billion this year. Congress is also giving Meta intense attention, and the tech industry as a whole is experiencing a slowdown.
The Meta CEO openly notified staff members in June that the business will be “turning on the heat” and letting go of people “who shouldn’t be here.”
According to reports, a different Meta executive instructed managers to “leave” employees who were “failing” to meet the company’s increased performance goals.
Thursday’s share price of Meta was down 0.7% to $141.19.