AI Starts ‘Taking Away’ Bonuses from Meta Employees

Meta✴ has cut stock compensation for most of its employees, the Financial Times reported, citing people familiar with the matter. The unpopular move comes as the company has seen a significant increase in its AI-related spending, which is estimated to be in the tens of billions of dollars this year.

Image source: Mark Zuckerberg

Each year, the company pays employees equity refreshers, which make up a significant portion of their compensation, along with their base salaries and cash annual bonuses. This year, most employees were told that their equity pay would be cut by about 10%, a figure that varies depending on the department and position of the employee. The company adjusts the amount of the bonus in line with industry trends, but aims to keep it among the highest in the local market.

The company’s long-term investments in AI will start to pay off this year, CEO Mark Zuckerberg said during a briefing on its quarterly earnings call, an area in which the company competes with players like OpenAI and Microsoft. He also mentioned that he is currently trying to improve relations with the administration of President Donald Trump, who has previously accused the company of censorship. Zuckerberg visited the White House this month to discuss how Meta✴ can support the government in promoting U.S. tech leadership abroad.

In addition to the financial cost-cutting measures, the company is also making difficult personnel decisions: in 2022 and 2023, the company laid off several thousand employees, and in February of this year, it said goodbye to another 5% – those whose performance indicators were too low were fired. In 2026 and 2027, the company is “targeting high turnover,” one current Meta employee told the Financial Times.