Shares of Facebook and Instagram parent Meta Platforms traded near their lows for the day after the company told employees it plans to cut 5% of its workers in performance-based job cuts in the U.S. next month.

The layoffs will remove 5 percent of Meta's workforce as an effort to 'move out low performers faster' in preparation for 'an intense year,' said CEO Mark Zuckerberg.

The upcoming job cuts are part of Meta's plan to reach a 10% "non-regrettable" attrition rate by the end of the current performance cycle. This number also includes an estimated 5% from 2024 alone. The layoffs will mostly impact employees who have been with Meta long enough to get a performance review and are considered underperforming.

Meta’s restructuring announcement is part of a larger restructuring effort at Meta, which began last year under what Zuckerberg called the “Year of Efficiency." The company has been focusing on cutting costs,

The company said in a memo sent to its employees on Tuesday that the layoffs would be based on performance ratings.