Meta Fires Employees Over Meal Stipend Misuse
In a recent development, Meta has reportedly terminated several employees for misusing the company’s $25 meal stipend. According to posts shared on the tech-oriented social media platform Blind, the firings occurred last week, primarily affecting staff members in the company’s Los Angeles office. Employees had been allegedly abusing the stipend by purchasing non-food items or ordering meals when not present in the office. Affected employees are said to have spent the stipends on items like toothpaste and tea instead of legitimate food expenses.
Meta fires employees after violations of the company’s meal stipend policy. Meta provides this meal stipend to employees who work past 6 p.m. in offices without cafeterias. Reports indicate that between 20 to 30 individuals were let go for these violations, which included giving their meal credits to colleagues or using them to buy groceries and household essentials. These actions drew the attention of Meta’s management, prompting a swift response from the company, which aims to maintain integrity in its employee benefits.
Meta’s Financial Performance Amid Restructuring
Despite its generous employee benefits, Meta is not lacking in financial resources. The company, currently valued at approximately $1.5 trillion, reported second-quarter earnings of $39.07 billion in July, marking a 22% increase compared to the same period last year. However, CEO Mark Zuckerberg has initiated a “year of efficiency,” leading to significant layoffs, including the dismissal of 10,000 employees and a hiring freeze for an additional 5,000 positions. This strategic pivot comes in response to the need for greater operational efficiency.
In a notable account shared on Blind, one of the terminated employees, who earned an annual salary of $400,000, recounted their experience. This individual confessed to spending their meal stipend on personal items, admitting they felt it was wasteful to use the credits for meals when their partner was cooking. Although they acknowledged their mistake to human resources, they were ultimately dismissed, describing the experience as “almost surreal.”
Ongoing Restructuring and Strategic Focus
Meta Fires Employees: The layoffs over meal stipend misuse are just one aspect of Meta’s broader restructuring efforts. The company confirmed that various teams within its WhatsApp, Instagram, and Reality Labs divisions are undergoing significant changes. A spokesperson for Meta stated that some teams are realigning resources to meet their long-term strategic goals, which includes relocating certain teams and shifting employees to different roles. In cases where positions are eliminated, Meta fires employees but claims to actively seek alternative opportunities for affected staff members.
Investors have responded positively to Zuckerberg’s aggressive restructuring moves, which are designed to enhance operational efficiency and increase focus on emerging technologies like artificial intelligence. Meta’s stock price has surged by 67% year-to-date, reaching $577, with a notable 78% increase over the past 12 months. This trend mirrors actions taken by other tech giants, such as Alphabet, which has also made difficult staffing decisions to prioritize investments in AI and streamline operations. Alphabet CEO Sundar Pichai recently indicated that reducing workforce layers was necessary to accelerate execution and innovation within the company. As the tech landscape continues to evolve, Meta’s strict adherence to policy and commitment to strategic realignment showcases its determination to remain a formidable player in the industry.
