Meta cuts staff stock awards for a second straight year

Meta has reduced employee stock awards for the second consecutive year, cutting equity rewards by 5% for most staff in early 2026, following deeper reductions in 2025. The move reflects ongoing cost-cutting measures amid financial pressures, signaling a shift in compensation strategy as the company prioritizes profitability over growth. Employees received formal notifications in February 2026, with the changes affecting global teams, though senior leadership’s compensation structures remain unclear. This follows Meta’s broader restructuring, including layoffs and project cancellations, as it navigates economic uncertainty and heavy investments in AI and metaverse technologies. Analysts suggest the cuts may impact morale and retention, particularly among top talent, as competitors like Google and Apple maintain more generous equity packages.