Meta’s New Reality: Record High Profits. Record Low Morale

Meta reported nearly $27 billion in profits for the first quarter of 2024, but internal sources confirm that employee morale has hit a record low due to layoffs, pay cuts, and internal tensions.

While Meta’s financial results demonstrate strong profitability, with revenues driven by its advertising business and significant investments in AI, employee morale has sharply declined. The company plans to cut approximately 10 percent of its workforce, around 8,000 jobs, citing efficiency and investment needs. This follows a series of layoffs totaling roughly 25,000 over the past four years.

Employees report widespread dissatisfaction, citing widening pay gaps, mandatory role changes, and the installation of internal activity-tracking software—claimed to be for AI training purposes—as key factors. An employee from Instagram described the mood as “horrifically, historically low,” with many hoping to be laid off to receive severance packages. Only those involved in core AI development and with high pay packages are reportedly thriving, according to a senior Meta leader.

Why It Matters

This situation underscores a disconnect between Meta’s strong financial performance and employee well-being, which could impact long-term productivity, innovation, and recruitment. The internal unrest and protests, including attempts to unionize in the UK, highlight potential future challenges for the company’s workforce stability and corporate reputation.

Background

Meta has experienced a series of layoffs and internal upheaval over recent years, with the company shifting focus from virtual reality to AI development amid mounting legal and ethical concerns. In 2024, Meta’s profits surged despite these internal issues, partly driven by aggressive investments in AI and data infrastructure. Employee dissatisfaction has grown alongside these strategic shifts, with recent court rulings and internal policies fueling unrest.

“Everyone is unhappy; the only people who are not unhappy are, literally, executives.”

— an Instagram employee

“Only individuals involved in core AI development and with the best pay packages seem to be thriving.”

— a senior Meta leader

“It’s frustrating to watch because it feels so unnecessary—particularly given how well Meta’s ad business continues to perform.”

— a legal staffer

What Remains Unclear

It remains unclear how long employee dissatisfaction will persist, whether internal protests will escalate, or if Meta’s leadership will implement changes to address morale issues. The full impact of internal unrest on Meta’s future performance is still developing.

What’s Next

Meta is expected to proceed with its planned layoffs on May 20, while employee protests and unionization efforts are likely to continue. The company may also face increased scrutiny over internal policies and employee relations, potentially prompting strategic adjustments.

Key Questions

Why is Meta experiencing low employee morale now?

Employees cite layoffs, pay cuts, internal activity-tracking software, and strategic shifts to AI as key factors contributing to dissatisfaction.

Will Meta’s profits be affected by internal unrest?

While profits remain high, sustained low morale could impact productivity and innovation, but the full effect is yet to be seen.

Are employees planning to unionize or protest?

Yes, some UK employees are actively seeking to unionize to protect their jobs, benefits, and privacy amid widespread dissatisfaction.

What is Meta’s response to these internal issues?

Meta largely declined to comment on specifics but has defended its layoffs and AI projects, emphasizing safeguards and data privacy measures.

What are the next steps for Meta’s internal policy changes?

Next steps include the scheduled layoffs on May 20 and potential responses to protests, with possible internal policy reviews depending on ongoing unrest.