At the beginning of February of this year, during the company’s fourth quarter earnings call with investors, Meta CEO Mark Zuckerberg declared 2023 to be the “year of efficiency.” In order to speed up the decision-making process, the CEO had also suggested that some “layers of middle management” will be removed. Meta sacked 10,000 workers earlier this month in accordance with the CEO’s remarks. Given that Meta had also laid off 11,000 workers in November 2022, this was the second round of major layoffs that the Facebook company has announced. It appears that the business wants to increase its “efficiency” even further. According to recent rumors, Meta plans to reduce some of its employees’ bonuses and is even eager to evaluate the performance of its staff twice a year.
Meta intends to reduce employee bonuses.
According to a Reuters report that was first attributed to the Wall Street Journal, Facebook’s parent corporation intends to reduce bonus payments for certain of its employees. A lesser share of bonuses and restricted stock awards, which are due in March 2024, will be given to employees who received the rating “meets most expectations” in their 2023 year-end reviews, the article noted. Previously, the bonus multiplier rate was 85% for those who received this rating. Yet, it is currently only 65 percent. The article also states that performance reviews of employees will now be conducted twice annually rather than just once.
According to a Meta representative to Reuters, “By incorporating lessons learned and comments received over the past year and optimizing for the future, we are making adjustments to our performance methodology. The restructure of the staff is unrelated to these developments.”
About Meta layoffs
As previously noted, Meta informed its staff through email earlier this month that it will be laying off 10,000 individuals. CEO of Meta Mark Zuckerberg stated in an email that “organization leaders will disclose reorganization plans over the coming few months focusing on flattening our orgs, discontinuing lower priority initiatives, and decreasing our hiring rates.” Additionally, he stated that after the company’s restructuring is finished, employment and internal transfers will restart. Additional pertinent timelines for efficiency include finishing our analysis from our hybrid work year of learning this summer so we may improve our distributed work model. We also hope to continuously improve processes and developer efficiency over the year,” he continued.
The CEO also discussed the value of working from offices in the same email, claiming that it made it simpler to forge relationships. He noted: “Our preliminary review of performance data indicates that engineers who joined Meta in-person and either stayed in-person or transferred to remote performed on average better than those who joined remotely. Also, this data demonstrates that engineers who work face-to-face with coworkers at least three days a week do better on average than those who don’t. More research is necessary, but our theory is that interpersonal ties still facilitate the development of trust and contribute to our ability to work more productively.”