Talent   //   January 17, 2025

Meta’s latest layoffs may herald larger trends putting a bull’s-eye on tech talent this year

When Meta CEO Mark Zuckerberg this week announced plans to cut 5% of the company’s workforce, citing a need to “raise the bar on performance management” in an “intense year” ahead, it was just the latest in a series of jolts in the tech industry as employers navigate the integration of AI and RTO.

The announcement follows prior layoffs at Meta, including a massive reduction of 11,000 people in November 2023 and another culling last March. It comes on the heels of the company’s controversial axing more recently of third-party moderators in what is largely seen as a nod to conservatives and the incoming Trump administration.

Workplace experts say the layoffs signal broader trends reshaping tech talent beyond mere performance concerns.

“Big tech will continue layoffs for two reasons: because the Covid tech bubble — when excessive hiring occurred while money was cheap and demand for tech services was high — is still bursting, and because AI has companies bullish on the idea of doing more with less,” said Sam Wright, head of operations and partnerships at job search platform Huntr.

“Every business should strive to eliminate poor performers. There’s nothing more toxic than keeping underperformers alongside high achievers.”
Dominic Monkhouse
business coach

The designation of “underperforming” employees may mask a deeper strategic shift in the company — like replacing people with AI, said Ben Eubanks, CEO of HR specialists Lighthouse Research & Advisory. In fact, a number of companies have reportedly replaced workers with AI or are suspected of doing so — among them, Google, Salesforce and Ikea.

The timing of the latest layoffs at Meta happens to dovetail with the company’s laser focus on AI, with Zuckerberg seen as particularly keen to advance the technology, including via its Llama 3 model.

As for letting go of subpar producers, some see that as necessary for maintaining a competitive edge. “Every business should strive to eliminate poor performers,” said business coach Dominic Monkhouse. “There’s nothing more toxic than keeping underperformers alongside high achievers.”

Still, others express a more critical view. “Underperformance is an excuse made by poor management,” Wright said. “What actually happened is these tech companies bet bigger than they were able to return and are now needing to correct their balance sheets.”

Online game developer Marin Cristian-Ovidiu is also skeptical of Meta’s reasoning. “Calling employees ‘underperformers’ feels like a corporate breakup text: ‘It’s not you, it’s us — but actually, it’s you,’” he said. Employees who may be struggling with performance are an easy target when it comes time to trim, as he sees it — and colleagues who are left behind end up “walking on eggshells. It’s stressful and messes with morale big time.”

“Underperformance is an excuse made by poor management.”
Sam Wright
head of operations and partnerships, Huntr

As for the health of the tech job market, he points to expanding opportunities in areas including AI and gaming — even though AI has also been blamed for job losses in the gaming domain.

Still, he remains bullish about prospects for tech jobs this year. “When the giants stumble, it shakes the whole playground,” he said. “But the bold will always bounce back.”

Despite the alarmist headlines, Eubanks provides context for the job market overall, noting that the software business represents less than 4% of the total U.S. workforce, according to government data. Furthermore, he points out, companies across a range of sectors — including manufacturing, financial services and life sciences — tend to view large-scale tech layoffs as a prime opportunity to acquire talent.

As for those inside Meta and other tech companies worried about job security, experts advise them to keep the focus on that which is in their control — namely, their own professionalism and development.

“Employees should concentrate on strengthening their skills and consistently adding value to their role and beyond their job description,” said Cyril Boisard, director of people at employee experience platform Workleap. “Ultimately, while employees don’t control decisions relating to their roles, they can control how they show up, and that will always make a lasting impact on their career.“