Jack Welch’s “Rank and Yank” is Fully Back as Meta Follows Microsoft in Cutting “Low Performers”

Mark Zuckerberg has shared plans for a workforce overhaul at Meta, highlighting a shift towards "efficiency-focused management".

Meta CEO Mark Zuckerberg has announced sweeping changes to the company’s workforce policies, emphasizing stricter performance management.

In an internal memo shared with employees, Zuckerberg outlined plans for “more extensive performance-based cuts” during this year’s review cycle. The move aims to enhance team quality and align the workforce with Meta’s strategic goals, including advancements in artificial intelligence, augmented reality, and social media.

Affected employees will be notified starting February 10, with generous severance packages provided. “This is going to be an intense year, and I want to make sure we have the best people on our teams,” Zuckerberg wrote in the memo, which was obtained by Business Insider. (read the full memo below)

Related: Users Leave Facebook, Instagram, Threads after Zuckerberg’s Fact-Checking Reversal

The decision represents a shift from the company’s previous approach, where employees underperforming would typically be managed out over the course of a year. This year’s changes will expedite the process, removing employees who fail to meet expectations during the current cycle.

Zuckerberg added, “We won’t manage out everyone who didn’t meet expectations for the last period if we’re optimistic about their future performance, and for those we do let go, we’ll provide generous severance in line with what we’ve provided with previous cuts.”

Industry Trends and Broader Implications

Meta’s strategy aligns with a broader trend among tech giants prioritizing workforce efficiency and performance optimization. Microsoft recently implemented layoffs targeting underperformers across various divisions, including senior roles in its security and cloud computing sectors.

The company has also reintroduced stack ranking, a performance evaluation system made popular by former General Electric CEO Jack Welch, that ranks employees on a bell curve, often resulting in the dismissal of those at the lowest end. This system, while effective in fostering competition, has drawn criticism for its potential impact on morale and fairness.

Similarly, Google reduced its management ranks by 10% after laying off 12,000 employees in 2023. These measures reflect a significant recalibration in the tech industry, where companies are balancing cost efficiency with the need to innovate in high-growth areas.

Restructuring Diversity Efforts and Content Moderation Policies

Meta has also disbanded its dedicated Diversity, Equity, and Inclusion (DEI) team and restructured how diversity initiatives are implemented across the organization.

Vice President of Human Resources Janelle Gale stated in an internal announcement that the term DEI has become “charged” and is often interpreted as implying preferential treatment for specific groups.

The company plans to integrate diversity efforts into its broader hiring strategies rather than maintaining a centralized team.

Changes to content moderation policies have further underscored Meta’s organizational shift. The company has discontinued its partnerships with third-party fact-checkers, opting instead for a community-driven moderation model inspired by X’s Community Notes.

Related: Algorithm of Meta Developer Finds Company Mission Correlates with Terrorist Organization, Gets Fired Instantly

This system allows users to provide contextual information to posts and has been touted as a way to increase transparency while reducing dependency on external moderators. While some view this as a step towards greater user involvement, critics have expressed concerns about the potential misuse of crowd-sourced tools for moderation.

Meta’s Long-Term Vision

Despite workforce reductions, Meta says it remains focused on its long-term vision of developing advanced technologies. Projects such as augmented reality glasses and AI-driven social media platforms are central to this strategy.

Zuckerberg’s memo emphasized the importance of maintaining high-performing teams to support these initiatives. “Letting people go is never easy,” the CEO wrote, “but I’m confident this will strengthen our teams and help us build leading technology to enable the future of human connection.”

Microsoft has similarly prioritized investments in artificial intelligence, leveraging tools like Copilot to integrate machine learning into productivity applications such as Word and Excel. These dual focuses on efficiency and innovation illustrate a broader shift in the tech industry’s operational strategies.

Mark Zuckerberg’s full Memo Shared With Meta Employees

“Meta is working on building some of the most important technologies in the world – – AI, glasses as the next computing platform, and the future of social media. This is going to be an intense year, and I want to make sure we have the best people on our teams.

I’ve decided to raise the bar on performance management and move out low-performers faster. We typically manage out people who aren’t meeting expectations over the course of a year, but now we’re going to do more extensive performance-based cuts during this cycle – – with the intention of backfilling these roles in 2025.

We won’t manage out everyone who didn’t meet expectations for the last period if we’re optimistic about their future performance, and for those we do let go we’ll provide generous severance in line with what we’ve provided with previous cuts.We’ll follow up with more guidance for managers ahead of calibrations.

People who are impacted will be notified on February 10 — or later for those outside the US.Letting people go is never easy. But I’m confident this will strengthen our teams and help us build leading technology to enable the future of human connection.”

Markus Kasanmascheff
Markus Kasanmascheff
Markus has been covering the tech industry for more than 15 years. He is holding a Master´s degree in International Economics and is the founder and managing editor of Winbuzzer.com.

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