In an effort to cut down on operational costs, Meta ( formerly Facebook) has announced slashing the employees’ well-being budget by $1000.
This move is reported to save Meta $73 million per year.
In the last couple of weeks, the company had laid off 13% of its employees globally which is a staggering 11,000.
The total number of Meta employees now stands at 76,000.
long with other tech giants, Meta is restructuring to bring down its costs.
The spokesperson of the company has told reporters that despite the employee well-being budget cuts, the employees are still receiving more perks than they used to in 2019.
In addition to a reduced budget for the well-being and better mental health of its employees, Meta is reducing other perks.
Before this semi-meltdown, the employees were getting free food, Lyft subsidies, and on-campus laundry. But now it appears that they will not be getting these perks.
Is Meta Making Loss?
With the record layoffs and slashing of perks for employees, people wonder if Meta is making losses. The company made $39.37B in 2021, a 35.08% increase from 2020.
However, in the third quarter of 2022, Meta’s net income amounted to 4.39 billion U.S. dollars, decreasing by over 50 percent when compared to the same period in 2021.
Why Meta Laying Off and Slashing Perks
Not just Meta, but all the tech giants are laying off their employees and cutting down on additional perks such as free food, on-campus laundry, transportation, etc.
The main reason behind this is the slow economic growth which is exacerbated by the ongoing inflation. With the war in Ukraine raging on, investors are cautious about investing and are selling stocks. Which has in return increased inflation globally.
These tough economic circumstances have left Meta with the option to either cut down on its costs or keep going with lesser profits than it earned in 2021. And apparently, the social media company is choosing the former.