Meta says no performance layoffs are planned for 2026, reversing course from earlier policies that targeted the company's lowest performers. The announcement comes amid online speculation about whether the social media giant would restart its performance-driven job cuts this year.

Meta Reverses Previous Performance Cut Policy

"These are individual cases not related to any company wide initiatives," a Meta spokesperson told Business Insider when asked about recent restructuring rumors. "For example we are not doing any 5% low performers like we did last year." This marks a significant shift from early 2025, when internal documents suggested performance-based job cuts could become an annual practice.

In early 2025, Meta cut 5% of its workforce, targeting what CEO Mark Zuckerberg called the company's "lowest performers." At the time, an internal FAQ indicated the company "may use future performance cycles" to move out underperforming employees. Business analysts noted this approach mirrored practices at other tech giants facing pressure to increase efficiency.

Reality Labs Continues to See Cuts

While Meta says no performance layoffs are planned company-wide, the company continues to reshape specific divisions. Last month, Meta cut about 10% of its Reality Labs division, affecting over 1,000 employees. The virtual reality and metaverse division has struggled to achieve profitability despite billions in investment.

The Reality Labs cuts represent strategic adjustments rather than performance-based terminations. The division, responsible for Meta's VR headsets and Horizon Worlds platform, has been a focus of Zuckerberg's long-term vision but has yet to deliver significant returns. Technology observers suggest Meta is finally acknowledging that its metaverse bet needs more time to mature.

What This Means for Tech Workers

Meta's reversal on performance-based cuts provides some relief to tech workers who have faced uncertainty in the industry. After massive layoffs across the tech sector in 2023 and 2024, Meta's decision signals a potential stabilization in hiring and retention practices.

However, the continued restructuring of Reality Labs shows that Meta is still willing to make tough decisions about specific business units. Workers in underperforming divisions may still face job insecurity even as the company abandons company-wide performance cuts.

Meta's Broader Workforce Strategy

The decision to abandon annual performance cuts aligns with Meta's broader efforts to rebuild employee morale and retention. After cutting over 21,000 jobs in 2022 and 2023, the company has been working to restore confidence among remaining employees.

Meta's stock has recovered significantly from its 2022 lows, reducing pressure for aggressive cost-cutting measures. The company has also benefited from efficiency improvements implemented during the earlier restructuring period. Read more about Meta's previous performance cut plans.