Meta Platforms Inc ( META ) shares are trading lower. The company on Tuesday announced performance-based job cuts that could impact about 5% of the company’s total workforce.

What Happened: According to a Bloomberg report citing an internal memo to employees, Meta is cutting approximately 5% of its 72,000 workers based on performance.

“I've decided to raise the bar on performance management and move out low-performers faster," Meta CEO Mark Zuckerberg reportedly said in an internal memo.

"We typically manage out people who aren't meeting expectations over the course of a year … but now we're going to do more extensive performance-based cuts during this cycle."

Meta dubbed 2023 the company’s “year of efficiency” as it slashed jobs in an effort to cut costs. This time around, the job cuts appear to be aimed at strengthening the company for what Zuckerberg expects will be an “intense year” focused on AI, smart glasses and social media innovations.

Meta said U.S. employees impacted by the performance cuts will be notified by Feb. 10 and be eligible for “generous severance.” Employees outside of the U.S. are expected to be notified at a later date.

META Price Action: Meta Platforms ( META ) shares were down 1.8% at $597.40 at the time of publication, according to Benzinga Pro.

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