Meta has reduced stock-based compensation for a large portion of its workforce, cutting annual equity refreshers by approximately 10% for tens of thousands of employees.
The decision results from the company’s increased investment in artificial intelligence and infrastructure, allocating up to $65 billion for major projects in 2025, Financial Times report.
The equity refreshers, a key component of employee remuneration alongside base salaries and bonuses, typically vest every quarter over four years.
Employees were recently informed of the reduction, though the exact figures vary depending on location and job level. Nonetheless, Meta maintains that it remains one of the top-paying employers in the industry.
This follows Meta’s financial strategy under CEO Mark Zuckerberg, who has described 2025 as a major year for the company. Shares in the tech giant have surged nearly 20% this year, reaching record highs and outperforming several competitors.
Last week, the company also increased its quarterly dividend by 5%, further benefiting investors.
Meta has been undergoing structural changes in recent years, including workforce reductions. The company laid off thousands of employees in 2023 as part of what Zuckerberg called a “year of efficiency.”
More recently, Meta dismissed another 5% of its staff, primarily targeting employees deemed to have underperformed.
Employee reactions to the compensation adjustments have surfaced on platforms such as Blind, an anonymous discussion forum. One user shared a meme suggesting unionisation, while another employee commented, “Meta is aiming for high attrition in 2026 and 2027.”
Alongside its internal restructuring, Meta has been navigating political and regulatory challenges in the United States. Zuckerberg recently met with officials at the White House to discuss Meta’s role in promoting American technological leadership.
Meanwhile, the U.S. Federal Trade Commission has launched an inquiry into possible censorship practices by major tech platforms, a move that could have implications for the company’s policies.
Meta has not issued a public statement regarding the reduction in employee equity awards.
