Major technology companies are gearing up for another round of layoffs, with Meta, Microsoft, and Amazon leading the charge, according to multiple reports.

Meta to Cut 5% of Workforce

Meta plans to reduce its workforce by 5%, targeting employees identified as “lowest-performing,” according to Bloomberg, as cited by CNBC. With over 72,000 employees, this move could impact approximately 3,600 jobs, marking Meta's largest round of layoffs since it cut 21,000 positions—nearly a quarter of its staff—between 2022 and 2023.

In an internal memo, CEO Mark Zuckerberg described 2024 as an “intense year” for the company, with a focus on artificial intelligence, smart glasses, and shaping the future of social media. The layoffs are part of Meta's strategy to align resources with these priorities. U.S.-based employees will be notified of their status on February 10, while international updates will follow later. Following the news, Meta’s shares fell 2.3% on Tuesday.

These reductions are part of Meta’s broader effort to streamline operations and better position the company for future growth. The impacted employees will receive “generous severance,” in line with previous rounds of job cuts.

Microsoft's Targeted Workforce Reductions

Microsoft is also preparing layoffs, reportedly affecting less than 1% of its workforce, according to Business Insider, as cited by CNBC. The company plans to use performance metrics to determine which employees will be let go.

Although relatively small in scale, these layoffs follow significant job cuts by Microsoft in recent years. In 2023, the company eliminated 10,000 positions and restructured its operations. Most recently, its gaming division laid off 1,900 employees in January 2024, three months after the $75.4 billion Activision Blizzard acquisition.

Amazon's Managerial Downsizing

Amazon is focusing on managerial roles in its latest workforce reductions. According to The Economic Times, citing The Information, the company aims to cut approximately 14,000 corporate managerial positions to improve the ratio of individual contributors to managers by at least 15% by the end of Q1 2025.

These layoffs, announced last year, are part of Amazon's effort to optimize its corporate structure and will not impact non-corporate employees.

A Broader Trend

The planned layoffs by these tech giants underscore a growing trend of performance-based workforce reductions in the tech industry, as companies seek to optimize operations and navigate economic uncertainty.