Mark Zuckerberg's 'year of efficiency' at Meta has spread to the company's upper ranks and incompetent VPs are next to be culled
How many vice presidents did Meta employ last year, and what is the planned reduction in their number according to Mark Zuckerberg's efficiency measures?
Last year, Meta employed an army of 300 vice presidents. According to Mark Zuckerberg's efficiency measures, he reportedly wants to reduce the number of vice presidents down to 250.
Can you describe the process Meta uses to identify vice presidents who may be subject to layoffs?
Meta uses a combination of performance reviews and a process called "stack ranking" to identify vice presidents who may be subject to layoffs. The company conducts midyear performance reviews and formal annual performance reviews in the first quarter to evaluate the performance of its VPs. Those who do not measure up to their peers through the stack ranking process are likely to face layoffs. Additionally, superiors at Meta are required to label 10% to 12.5% of their reports as underperforming, which could lead to these employees being put on a performance improvement plan and eventually being laid off.
How have Meta's productivity measures affected the company's structural hierarchy?
Meta's productivity measures, initiated by CEO Mark Zuckerberg, have led to significant changes in the company's structural hierarchy. The aim of these measures is to create a "leaner" operating structure with a flatter hierarchy. One of the key steps taken to achieve this has been reducing the number of vice presidents (VPs) within the organization. Previously, Meta had around 300 VPs, which was double the number from previous years. Zuckerberg intends to reduce this number to 250.
To identify underperforming VPs, Meta is utilizing midyear performance reviews and formal annual performance reviews. The process of "stack ranking" is used to compare VPs against their peers, and those who do not measure up are at risk of being laid off. Additionally, company rules require superiors to label 10% to 12.5% of their reports as underperforming, which could lead to these employees being put on a performance improvement plan and eventually being laid off.
These changes have led to a significant impact on Meta's workforce, with more than 20,000 layoffs in 2023 as a result of the newly implemented efficiency measures. This approach represents a shift from the company's previous focus on rapid growth, which saw increases of 20% to 30% annually.
Investors have responded positively to these changes, with Meta's stock price rising over the past year. Some analysts have praised Zuckerberg's efforts, noting that the focus on efficiency and a leaner organizational structure demonstrates his commitment to the long-term success of the company.