Meta Platforms, the owner of Facebook, is planning to reduce bonus pay for some of its employees and assess staff performance more frequently, according to an internal memo cited by the Wall Street Journal. The move comes as the company looks to restructure and make cuts in various departments.
Details of the changes
The Wall Street Journal reported that employees of Meta Platforms who receive a rating of “met most expectations” in their 2023 year-end review will receive a smaller percentage of their bonus and restricted stock award due in March 2024. The bonus multiplier for this grade has been cut from 85% to 65%. In addition, the company will start assessing staff performance twice a year.
A spokesperson for Meta Platforms said, “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.”
The company has announced that it would cut 10,000 jobs this year in a second round of layoffs, part of a larger restructuring effort that will see the company scrap hiring plans for 5,000 openings, eliminate lower-priority projects, and “flatten” layers of middle management. These measures come amid a deep economic downturn in the industry.
Impact of the changes
The changes in the bonus system may not be well-received by employees, particularly those who were expecting higher bonuses. However, the move may also motivate employees to perform better in order to receive the maximum bonus possible.
The more frequent assessment of staff performance may also have a positive impact on employee motivation and productivity, as employees will receive more regular feedback on their work.
Reaction from industry experts
Industry experts believe that the changes in Meta’s bonus system and performance assessment process are necessary steps to optimize the company’s performance and prepare for the future.
“While it’s difficult to see employees lose out on certain compensation packages, it’s important that Meta Platforms takes the steps it needs to in order to remain competitive in its industry,” said David Robertson, a former professor of practice at the Wharton School of the University of Pennsylvania.
Other changes at Meta Platforms
In addition to the changes in the bonus system and performance assessment process, the company is also cutting jobs and eliminating lower-priority projects. The company is also “flattening” layers of middle management in an effort to streamline operations.
A veteran Meta advertising product executive will leave the company in May as part of the company’s “year of efficiency” restructuring effort. The executive, Dan Levy, who heads the company’s business messaging project, said in a post to Meta’s internal social network that he wanted to focus on family after losing a child to leukaemia.
Levy has been with Meta for 14 years and his departure follows months of staff reductions and project pruning at the company.
The changes being made by Meta Platforms are necessary for the company to remain competitive in the industry and to prepare for the future. While the changes may not be well-received by employees, the move may also enhance employee motivation and productivity in the long term.
It remains to be seen how the changes will impact the company’s future performance and whether Meta Platforms will achieve its goal of optimizing operations.