To The Moon

$Meta Platforms, Inc.(META)$ recently announced in an internal memo that it plans to lay off approximately 5% of its workforce in 2025, primarily targeting underperforming employees.The implementation is expected to begin on Feb. 10, and about 3,600 employees could be affected.

According to Zuckerberg, this is an effort to raise the company's overall performance management standards in anticipation of an "intense year".Typically, underperforming employees are gradually managed out of the company over the course of a year, and the process will be accelerated this time around.At the same time, Meta has also said that it will offer generous severance packages to laid-off employees.This is Meta's move to further optimize its operations after massive layoffs in 2022 - 2023.

On the subject of layoffs, there's a god comment on the extranet

1. Thanks to LinkedIn, the world will know who Meta's worst performing 5% of employees are;

2. Ostensibly Mate wants to keep acquiring an ever more polished workforce, but of course what is actually happening is that everyone in the organization no longer supports each other because they are now all in direct competition and will actively sabotage each other;

3. I experienced this briefly once.Departments started competing because we knew layoffs were coming.By the way, the biggest instigators were none other than those who were laid off.They kept filing complaints with HR and turning their teams against them.Those who were friendly and cooperative kept their jobs;

4. It's called terminal elimination.It was all the rage in the tech industry until we realized it doesn't work at all.Aside from the fact that it can lead to internal sabotage and lack of collaboration, most organizations are terrible at determining which metrics actually matter for productivity.That person who is constantly outputting lines of code could be an extremely productive person or just inefficient;

5. But performance depends on a lot of factors, it could be the boss, the vibe, the work you're supposed to be doing, or seeing your CEO go into a divorce and turn into a limp-wristed nuisance

Some of the issues facing Meta

• A series of policy adjustments made by Meta, such as the end of its third-party fact-checking program and the relaxation of certain content censorship rules, have sparked widespread internal and external controversy, as well as cutbacks in its diversity and inclusion efforts, changes that have been accused of pandering to the Trump administration.

• Reels' very different ecology from Tik Tok's made it not benefit more from Tik Tok's ban;

• Significant capital expenditures, as well as a further expanded capex budget for 2025, could put pressure on margins in the coming quarters.