Meta has reportedly reduced the equity-based awards for most of its employees for the second consecutive year, as CEO Mark Zuckerberg channels unprecedented resources into artificial intelligence and data center expansion. According to a report by Financial Times, people familiar with the matter revealed that Meta trimmed its annual distribution of stock options by about 5% for the bulk of staff, affecting tens of thousands of employees. This is followed by a 10% cut last year, which shocked many employees inside the company. Equity refreshers a vital part of Meta’s compensation package alongside base salaries and bonuses are now being scaled back as the company reallocates funds.

AI spending spree

Meta CEO Mark Zuckerberg has embarked on a massive AI investment drive as it aims to outpace rivals like OpenAI and Google in developing advanced models and eventually ‘superintelligence’. Meta estimates that its capital expenditure on AI could reach $130 billion this year as the company is planning to hire top AI researchers for building a fleet of data centres. Some recruits have reportedly received pay packages worth tens or even hundreds of millions of dollars.

Balancing efficiency and investor concerns

While pouring money into AI, Meta has sought to reassure investors by cutting costs elsewhere. n January, the company eliminated about 1,500 jobs in its lossmaking metaverse division. Internally, Meta is also revamping its performance review system to reward top performers more generously, meaning overall compensation budgets have risen despite broad equity cuts.The Financial Times report also revealed that employees have voice their frustration on the matter. “Another reduction. I guess that’s what I get for trying! Bye Meta!” wrote an employee on anonymous workplace platform. Another quipped: “Cutting my work hours 5%.” Yet others noted that departures are unlikely given the shaky tech jobs market and Meta’s continued high pay relative to peers.