Facebook reportedly plans to reduce bonus payouts for staff as the company attempts to cut costs as part of Mark Zuckerberg’s “year of efficiency.”
According to an internal memo obtained by the Wall Street Journal, Facebook (now known as Meta), plans to reduce bonus payments and up the frequency of employee performance reviews as part of a broader restructuring strategy.
In the memo, Facebook states that staff members would receive a lower percentage of their bonus and restricted stock, due in March 2024, if they received a “met most expectations” rating in their 2023 year-end reviews. For that grade, the bonus multiplier was reduced from 85 percent to 65 percent. The memo states, “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.”
Mark Zuckerberg introduces Meta (Facebook)
(Chip Somodevilla /Getty)
Facebook also mentioned a return to biannual staff performance reviews. This adjustment coincides with the company’s efforts to reduce expenses, a strategy that has resulted in the closure of numerous projects and teams, a decrease in office space and travel costs, and the announcement of numerous rounds of layoffs. A total of 11,000 employees, or 13 percent of its workforce, were laid off by the company in November, and an additional 10,000 positions are expected to be eliminated in the upcoming months.
Mark Zuckerberg declared 2023 to be the “year of efficiency” in February. The memo further clarified, “These updates reflect changes we’re making based on what we learned about the process in 2022 and what we’re optimizing for in the year ahead.”
The upcoming restructuring is not specifically addressed by the midyear review process, which is set to begin in June and end in July. Instead, it seeks to provide “a calibrated performance signal for fairness,” as stated in the memo. The review will employ a three-point grading system that classifies staff as performing significantly above expectations, at or above expectations, or below them.
The company intends to announce the adjustments to all employees on Thursday and will discuss them in a meeting with managers from across the organization on Tuesday.
Facebook’s restructuring and cost-cutting initiatives are consistent with a growing trend among technology firms, including Salesforce, Microsoft, and Amazon, which have all announced job cuts as part of their restructuring plans.
Facebook stock has increased more than 65 percent this year, making up for some of the sizable losses it suffered in 2022. However, in early Tuesday trading, shares dropped more than two percent amid a wider stock selloff.
Read more at the Wall Street Journal here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan