Facebook’s parent company Meta has plans to lower bonuses for employees, aware that this will create dissatisfaction.
In a memo to staff, referred to by The Wall Street Journal, Meta acknowledges that the change to bonuses “may disappoint some people.”
However, Facebook’s parent company notes that the purpose is to “maintain a high-performing culture.”
According to the WSJ, the cost-pressured social media company is undergoing modernization, with greater emphasis on evaluating employee performance.
Performance reviews will occur more frequently, according to the internal memo, and this means that the bonus will be reduced for employees who meet “most expectations.”
Meta has scrapped projects and teams
The WSJ reports that Meta’s CEO and Facebook creator Mark Zuckerberg declared in February that 2023 would be an efficiency year. The social media giant has reportedly discontinued many projects and teams since last fall, according to the American business newspaper.
In addition, office space and the company’s travel expenses have been reduced.
In November, Meta announced that around 11,000 employees would be let go.
Recently, it was announced that an additional 10,000 jobs would be cut.
Several US technology companies are under pressure
According to the WSJ, Meta has a culture of firing employees who have received poor performance reviews for two years in a row, and in the latest round, thousands of employees received poor ratings.
The company is just one of several tech giants that have experienced painful stock market declines in the wake of US interest rate hikes. Astronomical market values have disappeared, and like Meta, Amazon, Microsoft, Salesforce, and others are under significant cost pressure and have announced that restructurings, including significant staff reductions, are inevitable.
