Saturday, March 22, 2025

Meta Faces Backlash Over Layoffs and Executive Pay Hikes

Meta, the parent company of Facebook, Instagram, and WhatsApp, recently laid off 3,600 employees, only to announce a significant increase in executive bonuses shortly thereafter.

The decision, which has been met with backlash from both the public and former employees, highlights the growing disparity between executive compensation and the treatment of regular workers in the tech industry.

On February 13, 2025, Meta’s Compensation, Nominating, and Governance Committee (CNGC) approved the layoffs, which affected approximately 5% of the company’s global workforce.

The company cited “low performance” as the primary reason for the job cuts, a justification that has been met with skepticism and anger from many of the affected employees.

According to reports, some of the laid-off workers had a history of high performance.

This raises questions about the fairness and transparency of the performance evaluations used to determine the layoffs.

Meta Executive Bonuses: A Controversial Decision

Just a week after the layoffs, Meta announced that it would be increasing executive bonuses to 200% of their base salary. This is more than double the previous rate of 75%.

This decision does not include CEO Mark Zuckerberg. The company justified it as a necessary measure to bring executive compensation in line with industry standards.

Meta’s board argued that, prior to the increase, the “target total cash compensation” for its executives was “at or below the 15th percentile” compared to similar positions at rival companies.

This indicated that their compensation was significantly lower than industry standards.

After the increase, the target total cash compensation for the named executive officers (other than the CEO) has risen.

It now falls at approximately the 50th percentile of the Peer Group Target Cash Compensation.

The timing of the announcement has led to significant backlash on social media and among former employees.

Many have accused Meta of prioritizing executive pay over the livelihoods of regular workers.

One social media user wrote, “Executives always think they are deserving of more money, regardless of their performance.”

They added, “And they rarely think regular workers are deserving of more money”.

Another user added, “Always more for the top, less for workers. Meanwhile, thousands are out of work looking for opportunities. I wish we could easily avoid Meta, but it’s hard to avoid in this social media era”.

Former Meta employees have also voiced their frustration, with some alleging that the layoffs were more about cost-cutting than performance.

Many believe they were unfairly dismissed for reasons other than poor performance, including taking approved leave.

One former employee stated, “Meta is the cruelest tech company,” accusing the company of being more focused on financial gain than treating its workforce fairly.

Ethical Concerns and Industry Standards

While some acknowledge that Meta’s executive pay hike brings compensation in line with industry standards, they argue that the timing is poor.

A social media user commented, “It’s worth noting that the new bonus plan is intended to bring Meta’s executive compensation more in line with industry standards.”

The user added, “However, the timing of the announcement has raised eyebrows, given the significant job cuts happening within the company”.

The stark contrast between rewarding top executives and cutting thousands of jobs has intensified scrutiny on Meta’s leadership.

Despite the controversy, Meta continues to expand its presence, particularly in India.

The company is actively hiring for 41 engineering positions in Bengaluru. These roles focus on software development, machine learning, and chip design for its data centers.

Meta has posted several job openings on LinkedIn in the past month. This indicates its push to build an engineering hub in India.

The company is also looking for an “experienced Engineering Director” to lead its India-based team.

This role is described by Meta as important for shaping its technical vision in the country.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus