Just days after cutting down 5% of its workforce, Meta has approved a lucrative new executive bonus plan, significantly increasing payouts for top leadership while slashing stock options for thousands of remaining employees.
According to a corporate filing at the Securities and Exchange Commission (SEC), senior executives can now earn up to 200% of their base salaries.
This is more than double the previous 75% cap — because the company decided their pay was too low compared to industry peers.
Meanwhile, thousands of regular employees will see their annual stock options cut by about 10%, with reductions varying by role and location.
The decision, made quietly by Meta's board just a week after mass layoffs, further highlights the growing divide between executives cashing in and the workers being left behind.
Mass Layoffs
Tech giant Meta has announced a massive workforce reduction, eliminating 3,600 jobs or 5% of its global workforce as part of a shift toward artificial intelligence initiatives.
In an internal memo, CEO Mark Zuckerberg framed the layoffs as a move to improve company performance, stating that the decision was made to "raise the bar on performance management" and "move out low performers faster."
The company’s hiring focus will now be centered on machine-learning engineers as it seeks to accelerate its AI initiatives.
However, former employees are pushing back, claiming the layoffs had little to do with individual performance and more to do with Meta's evolving AI focus.
In a LinkedIn post, ex-Meta product designer Steven S. described Zuckerberg’s reasoning as "misleading," asserting that his termination was unrelated to work quality.
"I worked hard this past year. I contributed, collaborated, and did my best to push my team and our work forward.
And yet, like thousands of others, I was swept up in a process that had more to do with hitting numbers than fairly evaluating individual performance."
Other employees affected by the cuts have also expressed concerns over a lack of transparency and support throughout the process.
A Workforce Reshaped by AI Priorities
The layoffs began on Monday, marking a major restructuring effort as Meta looks to AI development as the future of social media.
This new direction comes just a few years after the company's metaverse push, which saw the company invest heavily in VR, touting its applications in every field.
Zuckerberg has called 2025 a "defining year for AI development," signaling that Meta will continue integrating AI-driven features across its platforms.
Meta's urgency in expanding its AI capabilities comes amid rising competition in the industry.
The recent launch of DeepSeek, a faster and more cost-efficient AI model, has underscored the need for American tech companies to stay competitive in the global AI race.
Meta has already committed massive investments in AI, with plans to allocate approximately $65 billion toward AI initiatives in 2025.
The company is scaling up its data infrastructure, including activating its "Mesa" data center in Arizona and working on another 2GW facility to enhance its computing power.
The potential for AI to replace engineers and drive new business opportunities is still uncertain, but Meta is betting big on its long-term potential.
While Meta predicts AI will play a transformative role in its business, industry experts remain cautious about the immediate impact of current AI models.
Hence, businesses looking to integrate AI should focus on augmenting human expertise rather than banking on the outright replacement of employees.
While the long-term impact remains uncertain, companies that invest in adaptive AI strategies and prioritize ethical, transparent implementation will be better positioned to be competitive as the technology evolves.
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