Meta says it won't chop the bottom 5% performers this year
Business Insider
February 13, 2026
AI-Generated Deep Dive Summary
Meta has confirmed that it will not proceed with a new round of performance-based layoffs, despite recent online speculation suggesting otherwise. The company previously considered implementing annual job cuts targeting low performers as part of its workforce management strategy. However, Meta now clarifies that any recent restructuring actions, such as the 10% reduction in its Reality Labs division—which impacted over 1,000 employees—are isolated cases and not part of a broader initiative. This marks a shift from earlier discussions where Meta hinted at making performance-based layoffs an annual practice.
In early 2023, Business Insider reported that internal documents suggested Meta might use future performance cycles to address underperforming employees. Last year, the company carried out a 5% workforce reduction, focusing on its lowest performers. However, the current stance reflects a different approach, with Meta emphasizing that recent changes are unrelated to any overarching company-wide policies.
The clarification comes as Meta continues to restructure other parts of its business. Earlier this month, the company announced a significant layoff in its Reality Labs division, which is responsible for developing virtual and augmented reality products like Oculus. This move highlights Meta's ongoing efforts to realign its workforce with strategic priorities, particularly in areas where innovation and efficiency are crucial.
For readers interested in business and finance, Meta's decision underscores the evolving nature of corporate layoffs and workforce management. While performance-based layoffs were once a potential annual practice, the company now appears to be focusing on more targeted adjustments. This approach may help maintain employee morale while still addressing underperformance or realignment needs. By avoiding broad layoffs, Meta could also reduce the risk of talent shortages and foster a more productive work environment.
In summary, Meta's clarification on performance-based layoffs signals a strategic shift in its workforce management approach. While the company remains committed to restructuring certain divisions, such as Reality Labs, it is no longer pursuing a policy of annual cuts targeting low performers. This move could have broader implications for how companies balance performance evaluations with employee retention and business strategy.
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Originally published on Business Insider on 2/13/2026