The parent company of Facebook and Instagram trimmed its annual stock option grants by roughly 5 percent for tens of thousands of employees, according to people familiar with the matter. The move follows a steeper cut of about 10 percent last year, which had unsettled parts of the workforce at the time.
The decision comes amid an aggressive investment drive led by chief executive Mark Zuckerberg, who has committed vast resources to building AI capabilities across the company. Meta Platforms has been racing to compete with AI leaders such as OpenAI and Google in developing next-generation models and, ultimately, what Zuckerberg has described as “superintelligence.”
The $1.6 trillion tech group has projected that capital expenditures could reach as high as $130 billion in 2026, much of it earmarked for AI-focused data centers and computing infrastructure. At the same time, Meta has sought to recruit elite AI researchers and engineers with compensation packages reportedly worth tens — and in some cases hundreds — of millions of dollars annually.
While investing heavily in growth areas, the company has also moved to contain costs elsewhere to reassure investors concerned about the pace of spending and the lack of near-term returns. In January, Meta cut approximately 1,500 roles in its loss-making metaverse division, signaling a shift in priorities as AI becomes central to its strategy.
Equity awards form a key part of employee pay at Meta, alongside base salaries and annual cash bonuses. The company typically adjusts equity allocations in line with broader industry trends, while aiming to remain among the highest-paying employers in its local markets. This year, however, many employees learned they would receive around 5 percent less in equity “refreshers,” though the precise reduction varies depending on role and performance level.
At the same time, Meta is overhauling its performance review system. According to people familiar with the changes, the company plans to channel a greater share of its compensation budget toward top performers. As a result, overall compensation spending has risen, despite the broad-based reduction in equity grants. The changes were first reported by Business Insider.
Meta declined to comment on the adjustments.
The compensation shift has sparked discussion among employees on Blind, the anonymous workplace forum popular in the tech industry. Some expressed frustration at the latest reduction. “Another reduction. I guess that’s what I get for trying! Bye Meta!” one user wrote, while another responded, “Cutting my work hours 5%.”
Yet others noted that departures may remain limited, given ongoing uncertainty in the technology job market and the fact that Meta’s total compensation packages remain highly competitive by industry standards.
As Zuckerberg doubles down on artificial intelligence, the company appears to be recalibrating how it rewards its workforce — tightening broad-based equity grants while concentrating resources on elite AI hires and infrastructure critical to its long-term ambitions.