Menlo Park, CA – Meta, the parent company of Facebook, Instagram, and WhatsApp, has drawn widespread criticism after announcing a significant increase in executive bonuses—just weeks after laying off 3,600 employees. The company has raised performance-based bonuses for its top leadership from 75% to a staggering 200% of their base salaries, meaning Meta executives could now take home up to three times their annual salary in bonuses alone.
The move comes as part of the company’s ongoing financial restructuring, dubbed the “year of efficiency” by CEO Mark Zuckerberg. While Meta justifies the layoffs as a necessary cost-cutting measure to improve profitability, the decision to reward top executives so generously has sparked backlash from employees, investors, and industry watchers.
Meta’s Layoffs and Cost-Cutting Strategy
Over the past two years, Meta has undergone multiple rounds of layoffs, cutting tens of thousands of jobs. In 2023 alone, the company slashed over 21,000 positions, citing the need to streamline operations and optimize costs. In 2024, another 3,600 employees were let go, further reducing the workforce in what the company calls an effort to “remain competitive.”
Despite these layoffs, Meta has continued to post strong earnings, reporting billions in profits every quarter. The company attributes its financial success to strategic investments in artificial intelligence (AI), augmented reality (AR), and its growing advertising business. However, the stark contrast between job cuts and soaring executive compensation has raised ethical concerns.
Executive Bonuses: Justified or Corporate Greed?
The decision to triple executive bonuses has sparked controversy, especially given the layoffs that left thousands of employees jobless. Critics argue that while regular workers were sacrificed in the name of financial discipline, top executives are reaping massive rewards.
Industry experts believe this move aligns with broader trends in Big Tech, where executive pay continues to skyrocket despite ongoing layoffs. However, Meta defends its decision, stating that higher bonuses are necessary to retain top talent and incentivize leadership amid rapid industry changes.
A Meta spokesperson commented:
“To stay ahead in the highly competitive tech industry, it is crucial to reward and retain our best leadership. The revised executive compensation structure reflects our long-term commitment to innovation and shareholder value.”
Still, many remain unconvinced. The optics of rewarding executives while cutting jobs do little to improve Meta’s reputation, which has already faced scrutiny over data privacy concerns, antitrust investigations, and workplace culture issues.
The Bigger Picture: Trends in Big Tech Layoffs and Executive Pay
Meta isn’t the only tech giant facing backlash for executive pay hikes amid layoffs. Other major companies, including Google, Amazon, and Microsoft, have also cut thousands of jobs while increasing executive compensation. This growing trend raises concerns about the widening pay gap between top executives and regular employees in the tech sector.
A recent study found that CEO pay in Fortune 500 companies has increased by over 1,000% since the 1970s, while worker salaries have stagnated. Meta’s latest move only adds fuel to the ongoing debate about corporate responsibility, fair wages, and ethical leadership.
What’s Next for Meta?
Despite the backlash, Meta’s focus remains on expanding its AI capabilities, advancing its metaverse ambitions, and maintaining dominance in the digital advertising space. The company’s stock continues to perform well, with investors seemingly unfazed by the controversy surrounding executive pay.
However, employee morale remains a concern, and the company may face further scrutiny from regulators, advocacy groups, and even shareholders. Whether Meta will reconsider its bonus policies or continue with its current approach remains to be seen.
For now, the question lingers: Is this justifiable business strategy or another example of corporate greed
