Mountain View, California – Meta CEO Mark Zuckerberg has implemented permanent efficiency measures that now extend to the company’s upper management.
Last year, Meta had an extensive team of 300 vice presidents organized into five different levels of seniority. These VPs have become the focal point of Zuckerberg’s efforts to streamline operations, with the goal of reducing their numbers down to 250, as reported by sources familiar with the company.
Zuckerberg’s push for efficiency dates back to 2023 when he declared it the “year of efficiency,” resulting in over 20,000 layoffs. Impressed by the enhanced performance and speed of employees, Zuckerberg decided to make these changes a permanent part of Meta’s operations, promoting a flatter organizational structure.
To identify underperforming VPs, Meta has implemented midyear performance reviews and annual assessments typically conducted in the first quarter. Through a process called “stack ranking,” those who fall short of their peers are at risk of being let go.
Additionally, upper management must label 10% to 12.5% of their reports as underperforming, potentially leading to performance improvement plans and eventual layoffs for these employees. The company declined to comment further and directed inquiries to Zuckerberg’s detailed statements on Meta’s earnings and the permanence of his efficiency-driven changes.
Despite Meta’s historical annual growth of 20% to 30%, the company has not halted its layoffs since the initial round last year. Other major tech companies, including Google, Microsoft, and Tesla, have also followed suit, resulting in over 250,000 tech employees being laid off in the previous year.
Investors have rewarded Zuckerberg for his bold cost-cutting measures, with some analysts praising his actions. MoffettNathanson, in a research note, commended Zuckerberg, labeling him as a “capitalist” amid the flurry of efficiency-driven changes.