The bonus for employees who get a rating of ‘met most expectations’ has been cut to 65%, from 85% earlier, according to the memo. Employees are due to receive the bonus and restricted stock in March 2024, the report said.
The report added that Meta would go back to assessing its employees twice a year.
“These updates reflect changes we’re making based on what we learned about the process in 2022 and what we’re optimizing for in the year ahead,” said the memo, according to the WSJ report.
These developments come as CEO Mark Zuckerberg, while announcing layoffs last year, had highlighted the company’s intent to be more efficient.
“We’re restructuring teams to increase our efficiency. But these measures alone won’t bring our expenses in line with our revenue growth, so I’ve also made the hard decision to let people go,” Zuckerberg had written in a blog post on November 9 last year.
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Earlier this month, Meta announced another round of job cuts affecting 10,000 employees. Zuckerberg dubbed 2023 as the ‘year of efficiency’ in another blog post he shared earlier this month.“Here’s the timeline you should expect: over the next couple of months, org leaders will announce restructuring plans focused on flattening our orgs, canceling lower priority projects, and reducing our hiring rates. With less hiring, I’ve made the difficult decision to further reduce the size of our recruiting team,” Zuckerberg wrote in a blog post dated March 14.
“In our Year of Efficiency, we will make our organisation flatter by removing multiple layers of management. As part of this, we will ask many managers to become individual contributors. We’ll also have individual contributors report into almost every level — not just the bottom — so information flow between people doing the work and management will be faster,” Zuckerberg added.
The Facebook founder added that since cutting the workforce last year, things have moved faster at Meta, and that in retrospect, he “underestimated the indirect costs of lower priority projects”, implying that more lower priority projects will be shuttered.
“A leaner org will execute its highest priorities faster. People will be more productive, and their work will be more fun and fulfilling. We will become an even greater magnet for the most talented people. That’s why in our Year of Efficiency, we are focused on cancelling projects that are duplicative or lower priority and making every organisation as lean as possible,” he added.
