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Feb 11 – Meta (META, Financial) initiates a new round of global layoffs as it refocuses on artificial intelligence and virtual reality. The company targets roughly 4,000 positions for elimination, aiming to remove underperformers and improve operational efficiency. Layoff notices begin at 5 a.m. local time on Monday for affected employees across several regions. Local labor laws in Germany, France, Italy, and the Netherlands exempt workers from these cuts.
Today, managers have clear reduction targets, and even if lower-performing employees do not hit quotas, the more high-performing staff may also be at risk later. At the same time, Meta plans to hire machine learning engineers from Tuesday through mid-March to help work on its AI and VR offerings.
The restructuring, in particular, tracks broader industry trends in which tech companies scale up and scale down their workforce numbers when they hire freely during pandemic-era growth. The analysts say the move is a cautious yet requisite step to save and boost margins. In making this decision, Meta is marking a strategic shift in their focus to maintain a competitive edge in challenging markets and place them on a course for next-generation technologies.
This article first appeared on GuruFocus.