Meta (formerly Facebook) is reportedly planning lower bonus payouts for some employees in its “Year of Efficiency” after laying off 21,000 workers in two rounds of job cuts.
According to the Wall Street Journal, employees who receive a rating of “met most expectations” in their performance reviews will receive a smaller portion of their bonuses and restricted stock awards, which are due in March 2024.
A large number of employees have got the affected pay grade in a recent survey round. According to reports, Meta employees will receive 65% of their eligible bonus, down from 85%, with the rating, which is the second lowest of the five available for company employees.
“We understand that while this is a significant change that might disappoint some people, it aligns with our continued focus on maintaining a high-performance culture,” according to an internal memo sent to directors this week.
A company spokesperson was quoted as saying, “We’re making changes to our performance process taking into account learnings and feedback over the last year while optimising for the future. These changes are not related to workforce restructuring.”
A significant portion of the total compensation packages for tech workers is made up of performance bonuses and restricted stock awards.
Recently, Meta Founder and CEO Mark Zuckerberg declared to sack additional 10,000 employees by means of a few work-cut adjustments.
“We expect to reduce our team size by around 10,000 people and to close around 5,000 additional open roles that we haven’t yet hired,” Mark Zuckerberg said.
In a separate filing with the US SEC, Meta said the new job cuts will lower the high end of its expense guidance for the year by USD 3 billion. The fresh cuts came just four months after he laid off 11,000 employees, or 13 per cent of the company, in November last year.
Mark Zuckerberg stated that Meta intends to lift hiring and transfer freezes in each group following the restructuring.