Challenging the Status Quo: Meta Grants Managers 200% Bonus After Laying Off 3,600 Staff – Facebook’s Parent Company’s Bold Move

It is like this! Despite creating animosity, recently Meta, the parent company of Facebook, has given high-level executives bonuses of up to 200% of their base salary and even offered delayed bonuses to 3,600 employees.

Letting go of employees with lower potential than the set criteria may be understandable to some if done through a fair and transparent process. However, Meta is letting go of high-potential individuals just to hit the target numbers and even offering extravagant bonuses after letting them go.

In documents filed with the SEC, Meta stated that the percentage of bonuses given to high-level employees would increase from 75% of their base salary to 200% by 2025. Yet, this bonus scheme does not include CEO Mark Zuckerberg.

These documents also mention that this is to incentivize high-level executives to focus more on important company matters and serve as a reward for their past successes.

The cash compensation of executives is considered to be below the target by 15% when compared to executives in similar positions. The board increased this rate on February 13. However, Meta has not expressed any comments on this issue.

Bonuses for executives come along with layoffs of employees at a rate of 5% or around 3,600 people. Layoffs occurred after Mark Zuckerberg announced heavy investments in AI for 2025 and the need to let go of employees with low potential. Many employees who were let go shared that their performance exceeded expectations but were still laid off. Some chose to voice this publicly through LinkedIn.

Nevertheless, Meta’s fourth-quarter results for the past year have seen record revenue growth of 21% compared to the previous year, reaching $48.4 billion or approximately 1.6 trillion baht. This significant revenue increase is expected to come from advertising business and efforts to enhance AI-driven products.

TLDR: Meta, the parent company of Facebook, gives high-level executives significant bonuses and layoffs to boost company focus and productivity, despite mixed reactions from employees and criticisms from the public.
Source: Fortune