An American multinational technology conglomerate, Meta to reduce cost, is reportedly planning to cut employee benefits that cover mental health costs and “work-life balance needs.”
As per reports, The company is slashing its “Life@ benefit” funds from $3,000 (Rs 2.43 lakh) to $2,000 (Rs 1.65 lakh) in 2023. This is due to poor macroeconomic conditions as the reason for the cut.
Life@ benefit is one of the several perks Meta has pulled back on over the last few months in its effort to restructure the company to reduce spending.
By this reduction of $1,000 per employee would save Meta as much as $76 million a year. This move comes after Meta reportedly conducted “quiet layoffs” at Facebook that may lead to thousands of job cuts. The company has cut over 11,000 jobs, which is nearly 13% of its workforce.
Earlier, Zuckerberg mentioned during the last Meta earnings call that “Our plan is to steadily reduce headcount growth over the next year. Many teams are going to shrink so we can shift energy to other areas.”
Admitting that the social network has entered an economic downturn that will have a broad impact on the digital advertising business, Zuckerberg said that many “teams are going to shrink so we can shift energy to other areas inside the company”.
IT companies are already seeing margin pressure due to inflation and impending recession in markets like the US and Europe. The company like HCL Technologies, Snap, Microsoft, Twitter, TikTok, and Google have either laid off employees or frozen new hiring.
Elon Musk owned Twitter and laid off about 3,700 jobs or half of the company’s workforce in a bid to cut costs. Amazon also announced that the company is freezing new hiring in its corporate workforce sighting due to uncertainty in the global economy.
