Meta Platforms Inc. finds itself engulfed in controversy following its recent decision to lay off 3,600 employees—approximately 5% of its workforce—while simultaneously rewarding its executives with significant bonuses. The move has sparked outrage, with many criticizing the tech giant for being tone-deaf amid continued job cuts.
The Compensation, Nominatings, and Governance Committee (CNGC) approved the executive bonus increase on February 13, just one week after the layoffs were announced. The bonuses now stand at 200% of the executives' base pay, which is more than double last year's 75%. Critics have labeled this decision as hypocritical, especially since it follows mass layoffs purportedly justified by low performance ratings.
Meta defended the bonuses, asserting they were necessary for aligning executive compensation with industry benchmarks. According to company reports, before the increase, compensation for Meta executives was at or below the 15th percentile for similar positions within the tech industry. After the raises, it has reportedly risen to the 50th percentile.
A Meta spokesperson commented, "After this increase, the target total cash compensation for named executive officers (excluding the CEO) is at about the 50th percentile of the Peer Group Target Cash Compensation." Despite these reassurances, questions abound as to why the executive compensation was prioritized immediately following extensive job losses.
Employees affected by the layoffs have raised concerns about the justification behind them. “Meta is the cruelest tech company. People were let go for reasons other than performance, including people on approved leave. It’s all about financial gain,” expressed one former employee. Another staff member noted, “Executives always think they are worth more money no matter what their performance is. While thousands of workers are unemployed and searching for a chance.”
The stark juxtaposition of rewarding high-level executives alongside thousands of layoffs has incited ire among both current workers and the public. This sentiment is amplified by Meta's recent changes beyond just salary structures. Under the leadership of CEO Mark Zuckerberg, the company is shifting its corporate culture to align more closely with conservative viewpoints. Reports indicate Zuckerberg has been aligning with conservative figures, even hosting private dinners with ex-President Donald Trump.
These shifts extend to Meta's internal policies as well. The company has seen reductions in its diversity initiatives and adjustments to its content moderation guidelines, allowing for more controversial speech across its platforms. Observers note these trends signal significant changes within the company’s organizational ethos.
While some experts justify aligning executive compensation with industry standards, the timing of the announcement has drawn criticism from various quarters. One social media user described the scenario as “a PR fiasco,” underscoring the disconnect between executive rewards and the reality facing displaced workers. Another critic remarked, “Always more for the top, less for workers. Meta’s leadership is out of touch.”
Despite the backlash, Meta appears determined to proceed with its restructuring plans. The company continues to position itself for long-term strategic rebalancing amid substantial scrutiny from investors, regulators, and the tech community. Moving forward, the executive decisions surrounding pay, layoffs, and company culture will demand careful monitoring as Meta attempts to navigate through the turbulence of public opinion and internal discontent.
With widespread changes on the horizon, how Meta approaches its recovery amid layoff repercussions will undoubtedly affect its reputation and future operations. The challenges it faces now are pivotal, not only for its employees but also for the tech industry at large as it grapples with similar organizational dilemmas.