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Meta has slashed equity-based awards for the bulk of its employees for the second year in a row, as chief executive Mark Zuckerberg ploughs billions of dollars into hiring top AI researchers and building a fleet of data centres.
The group reduced its annual distribution of stock options by about 5 per cent for most of its staff, equating to tens of thousands of employees, according to people familiar with the matter. That follows a cut of roughly 10 per cent last year, which shocked some staff at the time.
Meta’s cut to a vital component of employee remuneration comes as Zuckerberg has embarked on a staggering AI spending spree in a bid to beat rivals such as OpenAI and Google to develop cutting-edge models and eventually “superintelligence”.
The $1.6tn company has estimated that its 2026 capital expenditures could come in as high as $130bn, while Zuckerberg has simultaneously lured top AI talent from its peers with annual pay packages and bonuses in the tens and even hundreds of millions of dollars.
But Zuckerberg sought to drive efficiency and make cuts elsewhere in the business in order to reassure jittery investors who are yet to see returns on Meta’s ballooning AI investment. In January, the company cut about 1,500 jobs in its lossmaking metaverse division.
Meta employees receive annual so-called equity refreshers, alongside base salaries and annual bonuses. Meta adjusts equity pay based on industry trends but still aims to offer among the highest remuneration in local markets.
Some employees have discovered they will receive about 5 per cent less equity this year. However, the exact change might differ depending on employees’ roles.
The company is also shaking up its performance review system this year, offering greater rewards for top performers, according to multiple people familiar with the changes, which were first reported by Business Insider. This meant that the company’s overall compensation budget had gone up despite the broad cuts to equity awards, people said.
Meta declined to comment.
Some staffers took to Blind, the anonymous employee messaging board, to discuss the compensation changes. “Another reduction. I guess that’s what I get for trying! Bye Meta!” wrote one. “Cutting my work hours 5%,” wrote another. However, one employee said staff were unlikely to leave, against the backdrop of a shaky tech jobs market and continued high pay at the company.