High-stakes AI gamble leaves ordinary employees footing the bill? Meta reportedly cuts equity incentives for two consecutive years

Latest news indicates that American tech giant Meta Platforms has cut equity incentives for most employees for the second consecutive year.

Sources reveal that Meta will reduce the annual stock option grants for the vast majority of employees by approximately 5%, affecting tens of thousands of staff. The previous year, the company cut about 10%, which shocked many employees at the time.

Meta employees’ compensation structure includes base salary, annual bonuses, and “equity refreshers.” The company adjusts equity compensation based on industry trends but still aims to offer competitive, even leading, benefits in various markets.

Some employees have noticed that this year’s equity rewards will be reduced by about 5%, though the exact decrease varies depending on the position.

Several employees discussed this compensation change on the anonymous workplace forum Blind. One wrote, “Another cut. What am I working so hard for? Goodbye Meta!” another joked, “Then I’ll just reduce my working hours by 5%.”

However, some employees believe that, given the weak job market in the tech industry and the company’s overall attractive compensation, the likelihood of large-scale layoffs is low.

Additionally, Meta is reforming its performance evaluation system. Multiple insiders say the new system will offer higher rewards to top performers. Although equity rewards are generally shrinking, the company’s overall compensation budget has actually increased due to a tilt toward high-performing employees.

Currently, Zuckerberg has begun making significant investments in artificial intelligence, aiming to surpass competitors like OpenAI and Google in advanced models, with the ultimate goal of achieving “superintelligence.”

Last month, Meta forecasted in its earnings report that capital expenditures in 2026 will reach between $115 billion and $135 billion, exceeding the average analyst estimate of $110.6 billion. This figure is nearly double its 2025 capital expenditure of $72.2 billion.

Meanwhile, Zuckerberg is also recruiting top AI talent from competitors with annual salaries and bonuses worth tens of millions or even hundreds of millions of dollars.

To soothe investors who have yet to see returns from massive AI investments and are feeling tense, Zuckerberg is also pushing for increased efficiency and cost-cutting in other areas. In January this year, the company cut about 1,500 jobs in its loss-making metaverse division.

(Source: Cailian Press)