Meta Platforms, Inc. has come under fire for announcing significant increases to executive bonuses shortly after executing mass layoffs. Just one week after cutting approximately 5% of its global workforce—around 3,600 employees—Meta revealed it would raise bonuses for its top executives from 75% to 200% of their base salary. The announcement has ignited fierce criticism, drawing attention to the stark disparity between executive rewards and employee job security.
The decision was approved on February 13, 2025, by Meta's Compensation, Nominative and Governance Committee (CNGC). According to the corporate filing, this hike is intended to align executive compensation with industry standards, as the company's previous bonus structure left their executives earning below the 15th percentile compared to peers. The newly established levels of pay aim to place these executives at approximately the 50th percentile within the tech sector.
Many observers expressed shock at the timing of the announcement, especially as Meta cited 'low performance' as the justification for its recent layoffs. The juxtaposition of cutting jobs and increasing executive pay has led to widespread social media backlash. Angry users criticized the thought process behind rewarding top brass during tough times for their former colleagues. One user encapsulated these sentiments, stating, "Executives always think they are deserving of more money, regardless of their performance. And they rarely think regular workers are deserving of more money."
Beyond the immediate reaction on social platforms, former employees have voiced grievances about the nature of the layoffs. Claims have surfaced alleging unfair dismissals, with several ex-Meta workers asserting their job cuts were more about cost-saving measures than actual performance. Allegations of employees being let go for taking necessary leaves only serve to amplify discontent. Former workers have characterized the company as potentially the "cruelest" within the tech industry, underscoring the ethical dilemma prevalent within Meta's recent decisions.
Despite the upheaval at home, Meta is pushing forward with plans to expand its engineering presence, particularly within India. The company has posted multiple open positions focusing on engineering roles around software development and machine learning. This hiring spree continues to raise eyebrows, considering many employees remain out of work after recent cuts.
Critics have also pointed to the potential risks associated with this approach. While the company claims the pay increases are necessary to attract talent and remain competitive, many are left questioning how this strategy impacts the company’s culture and the morale of those still employed. Comments surfacing online reflect this skepticism of the firm's motivations: "It's worth noting the timing of the announcement... particularly concerning the job cuts happening within the company."
Meta's CEO Mark Zuckerberg was excluded from the bonus restructuring plan, though the board has defended the raises stating it is integral to retaining key personnel who could help drive the company forward. The current climate surrounding technology firms is fraught; as tech giants strive to balance profitability with workforce management and social responsibility, how Meta moves forward will likely influence public perception greatly.
To sum it up, Meta’s significant adjustments to executive compensation amid considerable layoffs have opened the floodgates for both criticism and debate concerning corporate ethics and priorities. While the tech focus remains on attracting top-tier talent, the reaction from former employees and the public emphasizes the growing frustration around perceived inequities and the consequences of cost-cutting strategies on everyday workers. How Meta navigates this complex arena remains to be seen as they attempt to restore faith among stakeholders.