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Meta (NASDAQ:META) is stepping on the gas in its drive for efficiency, with CEO Mark Zuckerberg announcing a plan to cut around 5% of the company's workforceroughly 3,600 roles, as Bloomberg reported. But don't mistake this for a downsizing spree. Zuckerberg made it clear these are performance-based cuts, part of a strategy to raise the bar and fast-track decision-making. And here's the kicker: every role eliminated will be backfilled in 2025, as the company gears up for what Zuckerberg calls an intense year focused on AI, smart glasses, and the next chapter of social media.
This isn't Meta's first rodeo with efficiency measures. In 2023, the company slashed 10,000 positions and set the tone for tighter operations. Now, the goal is to achieve a 10% non-regrettable attrition rate, aligning its workforce with long-term priorities. Generous severance packages are on the table for those affected, with U.S.-based employees expected to receive their notifications by February 10. This approach underscores Zuckerberg's intent: fewer, better-performing employees driving Meta forward in its most critical verticals.
What does this mean for investors? Meta is playing the long game, doubling down on high-growth areas like AI while staying agile in a hyper-competitive market. The renewed focus on streamlining operations and reinvesting in strategic talent could set the stage for stronger margins and sustained innovation. Keep a close eyeMeta's next moves could redefine its place in the tech hierarchy.
This article first appeared on GuruFocus.