For the first time since its inception, Meta is feeling the impact of a rocky economy first-hand. The company’s share price has dropped 45% this year, and there are predictions that it may report its first revenue decline in its upcoming earnings call.
Many companies reduce their hiring targets when finances are not as prosperous as hoped, and Meta is no different.
In fact, chief product officer at the company, Chris Cox recently wrote in a memo to employees that the company needs to “prioritize more ruthlessly” and “operate leaner, meaner, better executing teams”.
However, as a result of the looming recession and its impact on Meta’s finances, there are now fears that this ruthlessness could extend to the headcount.
Redundancy concerns at Facebook
In a memo sent to staff earlier this month, Meta’s chief of HR, Lori Goler, called on managers to cut those who could not comply with “increased intensity”.
Goler noted that getting rid of low performers was the “right thing to do”.
Employees of Meta have now shared what they believe will happen next. Speaking to Insider, an anonymous director-level employee said that “[lay offs] hasn’t started yet but it’s coming.”
Another employee compared the situation to a “witch hunt”. This comes amid reports that engineering managers are looking for people to cut and are frequently discussing performance goals on communication platforms.
Additionally, a former employee anonymously commented that they were offered a severance package and decided to take it immediately rather than wait to be cut from the company.
This testimony is concerning when coupled with the fact that Maher Saba, VP of remote presence at Meta, instructed managers to compile names of low and “neutral” performers so that they can be reviewed by the company.
Saba said the goal of the process was to “move to exit people who are unable to get on track”.
He added: “If a direct report is coasting or a low performer, they are not who we need; they are failing this company. As a manager, you cannot allow someone to be net neutral or negative for Meta.”
Despite signs of redundancies, Meta insists that this is not happening. A spokesperson for the company said: “We don’t have any plans for layoffs at this time.”
The spokesperson went on to say: “Any company that wants to have a lasting impact must practice disciplined prioritization and work with a high level of intensity to reach goals.
“The reports about these efforts are consistent with this focus and what we’ve already shared publicly about our operating style.”
Employees will undoubtedly be interested in what is said on the Q2 earnings call, that takes place 27 July, as it may shed light on what the social media giant plans to do with these staff lists.
UNLEASH has reached out to Meta but has not received a response.
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