Meta is reducing equity rewards for most employees by 5% as part of cost-cutting measures aimed at supporting increased investment in artificial intelligence. The move, reported by the Financial Times, reflects a strategic shift under CEO Mark Zuckerberg to prioritize AI development while managing overall spending. The adjustment affects a broad segment of staff across the company, signaling tighter financial controls during a period of significant technological expansion.
The decision comes amid growing pressure to deliver returns on major AI initiatives, with Meta accelerating its efforts in machine learning and infrastructure. While the reduction applies to standard equity grants, it does not affect all roles equally, suggesting targeted adjustments within different departments. This change underscores a broader trend among tech firms to balance innovation funding with fiscal discipline.