WSJ: Meta to deliver subpar performance reviews to thousands of workers

By Scott Kanowsky

Investing.com -- Facebook-parent Meta Platforms, Inc. (NASDAQ:META) is due to deliver subpar performance reviews to around 10% of its staff in a potential sign that it is gearing up for a fresh round of layoffs, the Wall Street Journal reported on Friday.

The social media giant will give its second-lowest performance rating to thousands of workers, the paper said, citing people familiar with the matter. The company expects the move to persuade many of these employees to leave in the coming weeks, the people added, and more job cuts may be in line if not enough depart. Last year, 11,000 staffers, or about 13% of its workforce, were dismissed.

Meta also slashed a major metric used to judge employee bonuses, according to the report. The group's overall performance, which makes up part of the bonus, would be paid out at 85% of its target, the WSJ said. It marks the first time the figure has dropped below 100% since 2018.

Earlier this month, the Financial Times said Meta was pushing back its timeline for approving multiple teams' budgets as it looks to reduce headcount. Chief executive officer Mark Zuckerberg has stressed that he is looking to trim expenses in his bid to turn 2023 into a "year of efficiency."

In Meta's latest earnings, Zuckerberg outlined how he aims to control costs and announced a new $40 billion share buyback. Shares soared by 18% after the results, translating to an additional $88B in market value for a stock that had been under heavy pressure throughout 2022.

Shares were slightly lower in early U.S. trading on Friday.