Meta Platforms Sharpens Knives On Bonus Payouts
Facebook parent Meta Platforms Inc (NASDAQ: META) plans to cut some bonus payouts and proposes to evaluate employee performance more frequently.
Employees who “met most expectations” in their 2023 year-end reviews will receive a smaller percentage of their bonus and restricted stock award due in March 2024, the Wall Street Journal reports citing an internal memo. Meta slashed the bonus multiplier for that grade to 65%.
Additionally, Meta said it was shifting staff performance assessments back to twice a year.
Meta said the midyear review aimed to provide “a calibrated performance signal for fairness.” The review process will kick off in June and conclude in July.
Meta will discuss the changes in a meeting with managers across the company on Tuesday and announce the changes broadly to employees on Thursday.
The midyear review will come with a three-point grading system.
Since November, Meta has shelved numerous projects and teams, reduced office spaces, and cut travel expenses while announcing multiple layoffs.
Meta, in November, said it would let go of about 11,000 workers or 13% of its workforce. Meta recently announced it would cut another 10,000 jobs over the coming months.
Typically Meta fires employees who get low performer ratings in two successive review periods.
Meta gave thousands of employees poor ratings in its most recent round of performance reviews. Meta’s leadership expected the reviews to lead more employees to leave in the subsequent weeks.
Price Action: META shares traded lower by 0.91% at $201 premarket on the last check Tuesday.
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
This article Meta Platforms Sharpens Knives On Bonus Payouts originally appeared on Benzinga.com
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.