Meta reportedly fires a $400,000-a-year employee because he spent $25 in meal credits on toothpaste and tea

According to posts on the social media website Blind for Tech Pros, the layoffs occurred last week, with employees being let go from their positions in the Los Angeles office.

Separately, Meta has begun a broader restructuring of teams across its WhatsApp, Instagram and Reality Labs divisions.

A Meta employee explained in a post on Blind that employees receive a $25 Grubhub credit if they work after 6 p.m. in offices that don't have an on-site cafeteria.

A post seen by Assets the blind platform claims that the disgraced employees ordered meals when they weren't even in the office; passed on their recognition to other employees; or used the credit to buy food and other essentials.

Between 20 and 30 employees were reportedly laid off.

Meta is hardly shy about spending money – but that doesn't mean Mark Zuckerberg will allow the company to back down.

Currently valued at nearly $1.5 trillion, Meta in July reported second-quarter 2024 profits of $39.07 billion – a 22% increase year-over-year.

But the man at the top, himself worth $204 billion, pushed for and announced a “year of efficiency” in 2023 Lay off and freeze 10,000 employees Hiring for 5,000 more.

And it seems Meta isn't afraid to lay off even some of its highest-paid employees.

Another contribution to Blind, reported by the Financial Times, was written by an employee who claims to be paid $400,000 per year by the company.

The person said he worked “nights and weekends” for the Big Tech giant and spent his $25 credit on items like toothpaste and tea from the Rite Aid pharmacy.

The person said that if their partner was cooking or they were eating out with friends, the money would be spent on other things as the employee felt they “shouldn't waste” the bonus.

In the post, the employee claimed he admitted his mistake to HR but was then fired, adding: “It was almost surreal.”

Meta didn't answer AssetsPlease leave a comment to confirm or clarify the issue.

More meta layoffs

The handful of people laid off over food costs won't be the only ones leaving Meta.

Separately, Meta has confirmed restructurings in other teams.

The tech giant said this Financial Times: “Today, some teams at Meta are making changes to ensure resources are aligned with their long-term strategic goals and site strategy.

“This includes moving some teams to other locations and moving some employees to other roles. In situations like this where a position is eliminated, we work hard to find other opportunities for the affected employees.”

The market has largely welcomed Zuckerberg's moves that have improved efficiency and increased focus on artificial intelligence.

Meta's share price is up 67% year to date and 78% in the last 12 months to $577.

Zuckerberg isn't the only one making some unpopular personnel decisions to maintain the momentum of a Big Tech giant.

In January, Alphabet CEO Sundar Pichai told employees in an internal memo that the job cuts were part of a broader decision to further invest in new technologies such as AI.

“The reality is that we must make difficult decisions to create the capacity for this investment,” he wrote.

For some teams, this meant eliminating jobs, which Pichai described as “removing layers to simplify execution and drive speed.”

Recommended newsletter
Data sheet: Stay on top of the technology business with thoughtful analysis from the biggest names in the industry.
Register here.