Meta Platforms, the parent company of Facebook, is reportedly planning to reduce bonus payouts for certain employees and increase the frequency of performance evaluations, according to a report from the Wall Street Journal that references an internal memo.
Employees who receive a rating of “met most expectations” in their 2023 year-end reviews will see a decrease in their bonus and restricted stock awards scheduled for March 2024. According to the WSJ, the bonus multiplier for this rating category has been adjusted from 85 percent down to 65 percent.
In addition to these changes, the company will bring back semi-annual performance evaluations. A spokesperson for Meta stated, “We are making changes to our performance process, taking into account learnings and feedback over the last year while optimizing for the future. These changes are not related to workforce restructuring,” offering no further details.
Previously, on March 14, Meta announced plans to cut 10,000 jobs in 2023 as part of a broader restructuring initiative. This plan also includes cancelling hiring for 5,000 open positions, terminating lower-priority projects, and streamlining management layers as the industry prepares for an anticipated economic downturn.
Additionally, a report from Reuters indicated that a long-serving Meta executive in charge of advertising products plans to depart the company in May. This comes amidst ongoing project and staff reductions deemed by CEO Mark Zuckerberg as the “year of efficiency.”
Dan Levy, Meta’s vice president of business messaging, announced in a post on the company’s internal network that he intends to focus more on his family following the loss of a child to leukemia. “I made this decision slowly (over the last 2+ years) and then all of a sudden,” he noted.
A Meta representative confirmed Levy’s upcoming exit and stated that business messaging would continue to be a key focus and an area of investment for the company this year. Levy had been with Meta for 14 years and was recognized for the growth potential of the business messaging project, though he was replaced last year as the head of overall ad and business products.
© Thomson Reuters 2023
