Menlo Park, California – Meta CEO Mark Zuckerberg is implementing permanent efficiency measures that are targeting even the highest ranks within the company.

Last year, Meta had around 300 vice presidents divided into five tiers of seniority, and now these executives are facing cuts as part of Zuckerberg’s efficiency drive. The goal is to reduce the number of VPs to 250, down from the previous count of half as many, as reported by sources familiar with the company.

This move follows Zuckerberg’s declaration of 2023 as the “year of efficiency,” which led to over 20,000 layoffs. The CEO was impressed by the improved performance and speed of the remaining employees, leading him to make the efficiency changes a permanent part of Meta’s operations. The restructuring involved creating a leaner operating structure with a flatter hierarchy.

To identify underperforming VPs, Meta is utilizing midyear and annual performance reviews, incorporating a process known as “stack ranking.” Those who do not meet expectations may face termination. Superiors are required to label a percentage of their reports as underperforming, potentially resulting in layoffs for those employees.

With Meta’s shift towards efficiency, other tech giants like Google, Microsoft, and Tesla have also initiated layoffs, culminating in more than 250,000 tech workers losing their jobs in the past year. Despite the risks associated with major job cuts, Zuckerberg’s decisions have been well-received by investors, with some analysts praising his efforts and acknowledging him as a capitalist leader.

The ongoing restructuring at Meta signifies a departure from the company’s previous growth rates ranging between 20% and 30% annually. Zuckerberg’s focus on productivity and cost-cutting initiatives has been a strategic move to position Meta for future success in the rapidly evolving tech landscape, with investors showing confidence in his approach towards leading the company.