META -1.54%
parent Meta Platforms Inc. plans to lower some bonus payouts and will more frequently assess employee performance, according to an internal memo, part of a sweeping revamp of the social-media company that includes large head-count reductions.
Employees who are given a rating of “met most expectations” in their 2023 year-end reviews are set to receive a smaller percentage of their bonus and restricted stock award due in March 2024, the social-media giant on Monday told managers in a memo viewed by The Wall Street Journal. The bonus multiplier for that grade has been cut to 65%, according to the memo. It was 85%, according to an internal document viewed by the Journal.
“We understand that while this is a significant change that might disappoint some people, it aligns with our continued focus on maintaining a high-performance culture,” the memo said.
Additionally, Meta said it was shifting assessments of staff performance back to twice a year. The move comes amid a push by Meta to cut costs.
Meta Platforms didn’t immediately respond to requests for comment.
In February, Chief Executive
Mark Zuckerberg
declared 2023 the “year of efficiency.”
Monday’s memo said, “These updates reflect changes we’re making based on what we learned about the process in 2022 and what we’re optimizing for in the year ahead.”
Since November, the company has closed numerous projects and teams, reduced office spaces and cut travel expenses, while also announcing multiple rounds of layoffs. The company in November said it would let go of about 11,000 workers, or 13% of its workforce. Meta recently announced it would cut another 10,000 jobs over the coming months.
Typically Meta pushes employees out of the company after rating them as low performers in two successive review periods. Meta gave thousands of employees subpar ratings in its most recent round of performance reviews, the Journal reported. Meta’s leadership expected the reviews to lead more employees to leave in the subsequent weeks, the Journal reported.
The company, in the Monday memo, said introduction of the midyear review wasn’t related to the coming restructuring, but aimed to provide “a calibrated performance signal for fairness.” The review process is due to kick off in June and conclude in July according to the memo.
The company is planning to discuss the changes in a meeting with managers across the company on Tuesday, and said it aims to announce the changes broadly to employees on Thursday, the memo said.
Meta is among the growing number of tech employers trying to cut employee ranks and trim costs.
Amazon.com Inc.,
Microsoft Corp.
,
Salesforce Inc.
and many others have announced restructuring steps, including job cuts.
The midyear review will come with a three-point grading system that classifies staff either as performing significantly above expectations, at or above expectations, or below them.
—For more WSJ Technology analysis, reviews and headlines, sign up for our weekly newsletter.
Write to Salvador Rodriguez at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
For all the latest Technology News Click Here
For the latest news and updates, follow us on Google News.
