It looks like 2025 is set to be another tough year for big tech.
According to recent reports, Meta plans to cut its workforce by 5%, while Microsoft is preparing to lay off a small percentage of its employees.
Both tech giants have expressed intentions to retrench their lowest performing employees. Though it’s unclear how many Singapore-based staff are impacted for both of these companies, here’s what we know so far:
Moving “low performers” out of Meta
Meta CEO Mark Zuckerberg informed employees of the decision to “move out low performers faster” through an internal memo posted on the company’s internal Workplace forum on Tuesday (January 14).
As Meta positions itself for “an intense year,” it is “raising the bar on performance” through performance-based eliminations. This will affect 5% of its staff, which accounts for roughly around 3,600 jobs.
This is going to be an intense year, and I want to make sure we have the best people on our teams. I’ve decided to raise the bar on performance management and move out low performers faster.
Mark Zuckerberg, CEO of Meta
US-based employees affected by the cuts will be notified by February 10, with those outside of the US notified at a later date. Zuckerberg added that the company would “provide generous severance,” following past practices in previous layoff rounds.
Responding to a media enquiry by Vulcan Post, a spokesperson shared that the impacted roles would be backfilled in 2025. However, they have declined to comment further.
The cuts represent Meta’s largest layoffs since it eliminated 21,000 jobs, or nearly a quarter of its workforce, between 2022 and 2023.
Hiring freezes at Microsoft
Last Wednesday (January 8), Microsoft confirmed to CNBC that it would cut a small percentage of jobs across departments based on performance. The job cuts will affect less than 1% of employees.
Vulcan Post also reached out to the tech company for comment, where a spokesperson shared that they are unable to share specific locations of impact. However, they clarified that Microsoft “typically backfills roles” when employees leave due to performance reasons.
At Microsoft, we focus on high-performance talent. We are always working on helping people learn and grow. When people are not performing, we take the appropriate action.
Microsoft’s spokesperson
That said, according to recent reports, Microsoft also announced a hiring freeze for its consulting arm in the US, as part of a broader effort by the company to reduce costs.
Consulting executive Derek Danois notified employees in an internal memo that the division will hold off on hiring new employees and back-filling roles, emphasising that careful management of costs is of utmost importance.
The memo also instructed employees not to expense travel for any internal meetings and to use remote sessions instead.
In early 2023, Microsoft laid off 10,000 employees, primarily those in its engineering department, as the company grappled with a broader shift in the market and economy.
In January 2024, it laid off 1,900 jobs from its gaming unit after acquiring American video game holding company Activision Blizzard.
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