Meta Platforms Inc. is set to cut 5% of its global workforce, targeting employees classified as the “lowest performers.” This move aligns with CEO Mark Zuckerberg’s ongoing strategy to streamline operations and prioritize efficiency across the company. The layoffs come amid continued economic pressures and shifting market dynamics in the tech industry.

The decision affects thousands of employees across various departments, including engineering, product development, and business operations. This reduction follows Meta’s previous rounds of layoffs in 2022 and 2023, highlighting a sustained focus on leaner operations. The company attributes these cuts to performance evaluations, emphasizing the need to eliminate underperformance and improve productivity.

Meta’s pivot towards artificial intelligence (AI) and the metaverse has driven significant internal restructuring. Resources are being redirected toward AI development, virtual reality (VR), and augmented reality (AR) products, which are seen as long-term growth drivers. Zuckerberg has signaled that future investments will prioritize innovation in these fields over expanding non-core business units.

The layoffs reflect broader trends in the tech sector, where companies balance cost-cutting with strategic investments. Similar workforce reductions have occurred across the industry, with firms like Amazon, Google, and Microsoft implementing their downsizing measures to navigate economic uncertainty and optimize resources.

This shift suggests increased competition and higher performance expectations for the global tech workforce. Roles in emerging technologies such as AI, machine learning, and immersive digital experiences are becoming more secure, while traditional roles face consolidation or automation. This restructuring may lead to wage stagnation in some roles and talent shortages in others, particularly in specialized tech fields.

To adapt, tech professionals need to upskill in areas aligned with industry trends, such as AI, cloud computing, and cybersecurity. Companies, meanwhile, should consider balancing performance management with employee well-being to maintain morale and innovation. Meta’s aggressive performance-based cuts could trigger retention challenges if high-performing employees perceive the work environment as unstable.