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

Meta will cut about 5% of its workforce, focusing on getting rid of low-performing employees at the social media giant.

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.

Meta plans to dismiss approximately 3,600 employees identified as low performers and replace them with new hires, according to an internal memo reported by Bloomberg on Tuesday.