What’s going on:
Meta employees who have exceeded expectations in their 2023 year-end reviews will receive a reduced percentage of their bonuses and restricted stock awards in March. As part of its “year of efficiency,” this change has been imposed by Mark Zuckerberg, CEO of Facebook/Meta.
Facebook has taken on a markedly frugal perspective, which is a notable transformation for the company.
Why it matters:
The tech sector has had to swiftly adjust to the high-interest rates, and many organizations have been bracing themselves for the potential of a severe economic recession arriving this year or next.
Meta said a few weeks ago that, as part of a restructuring, they would cut 10,000 staff this year and delay the recruitment process for 5,000 available positions.
How it’ll impact the future:
While a recession may be on the horizon, as soon as the Federal Reserve capitulates and reduces interest rates, big tech companies might be among the first to appreciate in value. This industry has been one of the hardest hit, but there is room for recovery.