According to a report by the Wall Street Journal, Meta, the owner of Facebook, has recently cut thousands of jobs and is planning to reduce bonuses for some employees, while also increasing the frequency of performance assessments. As per the report, employees who receive a rating of ‘met most expectations’ during their year-end reviews in 2023 will receive smaller bonuses and restricted stock awards.
The report also states that the bonus multiplier for a particular grade has been reduced from 85% to 65%. The frequency of performance assessments will now be twice a year. However, a spokesperson from Meta has stated that the changes to the performance review process are not related to the workforce restructuring that has been taking place over the past year.
Meta has already cut more than 20,000 jobs due to a fall in demand and recession fears. On March 14, the company announced that it would be cutting a further 10,000 jobs this year and would be scrapping its hiring plans for 5,000 openings. This is in addition to the more than 11,000 workers that the company asked to leave in November last year.
Mark Zuckerberg, in a memo to employees, stated that the majority of the job cuts would occur in April and May, and would continue throughout the rest of the year. The restructuring in the tech group will be announced in late April, and cuts to business groups will be made in May.
Zuckerberg also listed some factors affecting Meta’s growth, including higher interest rates in the US, global geopolitical instability, and increased regulation.
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