Some Meta employees are to experience lower bonuses and more staff assessment
Per Reuters
As part of Meta's cost-cutting measures, some employees are expected to receive lower bonuses and more staff assessment. Now, the staff is expected to be assessed twice a year.
Per WSJ, citing an internal memo, employees that perform well by the end of 2023 in their year-end reviews will get smaller bonus percentages and stock awards. Previously, the bonus multiplier for the grade sat at 85%, but it will be cut down to 65%.
The stock awards will reportedly be due in March 2024. A Meta spokesperson gave a statement to Reuters regarding the situation, saying they are trying to become better optimized.
"We are making changes to our performance process, taking into account learnings and feedback over the last year while optimizing for the future. These changes are not related to workforce restructuring,"
Per CNBC TV18, Meta often fires staff after they get a low performer rating for two consecutive review sessions. It was announced that there were hundreds of below-average scores in Meta's most recent performance reviews.
This came shortly after Meta announced another layoff round of 10,000 employees this year. This is part of the company's decision to abandon its hiring plans for 5,000 new openings.
Before that, it was reported that Meta had already spent almost a billion in its fourth quarter just to lay off its employees. To be specific, $975 million in severance costs.
Recently, Meta was toying with possibly creating a Twitter app competitor. This comes as Elon Musk's Twitter has dropped in value, with the CEO saying it is now only worth $20 billion, despite buying it for $44 billion.
Meta's decision to cut costs comes after it was dubbed the worst-performing stock in the S&P 500 in 2022 after dropping around 73% in November. The company lost $9.4 billion in 2022 alone.
See flow at unusualwhales.com/flow.
Other News:
- Meta is toying with the possibility of creating a Twitter app competitor
- Meta spent almost a billion in Q4 just to layoff its employees
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