close
close

first Drop

Com TW NOw News 2024

Meta Axes staff for food benefits abuse amid larger layoffs
news

Meta Axes staff for food benefits abuse amid larger layoffs

Meta has reportedly fired approximately 20 employees for misusing their meal credits.

The shooting, like reported Wednesday (October 16), by the Financial Times (FT), comes amid a wider series of layoffs at Meta.

According to the report, the staff members – based in Los Angeles – had used $25 meal credits to purchase various household items.

The FT notes that Meta – like most Big Tech companies – offers free food to employees as a perk, with workers in offices without a cafeteria getting credit for meal delivery services like Grubhub or UberEats. PYMNTS has reached out to Meta for comment but has not yet received a response.

The multibillion-dollar company provides daily allowances of $20 for breakfast, $25 for lunch, and $25 for dinner. The laid-off employees, a source told the FT, had long abused this system, pooling their money or having meals sent home, even though the funds were intended to be used in the office.

According to the report, the layoffs took place last week, just before Meta began restructuring teams at WhatsApp, Instagram and its augmented/virtual reality unit Reality Labs.

Sources told the FT that this move included the firing of some employees and the redeployment of others, a signal that CEO Mark Zuckerberg efficiency campaign is ongoing.

Meta has thousands of job cuts over the past two years, starting with an 11,000 job reduction in November 2022, followed by another 10,000 layoffs last March. The company said at the time it was freezing hiring for an additional 5,000 open positions.

And this year, the company began a plan to reduce the number vice president roles from last year’s 300 to about 250.

In other Meta news, the company recently launched its Orion has expanded reality (AR) glasses, leaving PYMNTS wondering about the future of AR commerce.

The PYMNTS Intelligence Study, “The online features that drive consumers to shop with brands, retailers, or marketplaces,” found that people are looking for an interactive, customized commerce experience, with 40% of consumers weighing how easy it is to navigate a merchant’s online store when deciding where to make purchases.

“As AR glasses become more integrated in everyday commerce, they will necessitate the development of innovative payment solutions that can meet the demands of this new medium,” said that report.

“Traditional payment methods, such as swiping a card or even tapping a phone, can feel cumbersome in an AR-driven environment where immediacy and convenience are paramount.”