Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Meta employees look to ditch jobs amid stock crash: ‘Feeling like s–t’

Shares of Facebook and Instagram parent Meta have plummeted more than 40% over the past six months — and some employees saddled with underwater stock options are eyeing the exits.

“Joined Meta near [all time stock high], now feeling like s—t,” one Meta employee said this week in a popular thread on Blind, a corporate message board with verified members. “What should I do?”

“Leave this crap place,” another “Metamate” responded.

“Same boat,” a third said, adding that they’re “already interviewing” at other companies.

“Duh, you’re supposed to think Meta, Metamates, and me. Ask yourself if this train of thought is good for the company,” a fourth joked. “Just kidding… it super sucks.”

Meta is facing a worker stampede as its stock price has fallen from an all-time high of more than $380 in September to $216.49 on Friday. The slide started last fall as a damning series of leaks put massive political pressure on the company and kicked into overdrive as Meta started to feel the multibillion-dollar sting of privacy changes from Apple and Google that are pummeling its advertising business.

“People are definitely paying attention and are concerned about the stock price,” Michael Solomon, who manages software engineers through his talent firm 10x Management, told The Post. “I think a lot of people have questions about if Meta is going to get out of this — if this could be the beginning of the end for them.”



‘In your interest to leave’

When software engineers join companies like Meta, Google or Amazon, their compensation typically consists of a roughly 50/50 mix of a cash and stock options, with entry-level employees getting more cash and more experienced workers getting more stock, according to data from tech salary tracker levels.fyi.

At Meta, new hires are typically given a set number of restricted stock units based on the company’s average stock price around the time they were hired. That means there can be huge upsides for employees who join before a company’s stock rockets — but it also leaves them vulnerable to downturns.

For example, a Meta employee who was given $100,000 worth of restricted stock units around the company’s September stock peak would now be left with roughly $57,000.

It also means that opportunists from other companies — such as Microsoft, which is down 10.3% so far this year — can theoretically “buy the dip” by taking a job at a beaten-down company like Meta, getting more stock options at a lower price.

In response to a disgruntled “Metamate’s” post on Blind, one Microsoft employee wrote, “The only people would be doing well are those who are currently transferring companies right now. I’m doing exactly that and headed to Meta.”

Laura Martin, a tech and media analyst with Needham & Company, said that while many tech workers may feel loyal to their companies, it makes financial sense for many to switch jobs when the value of their options tanks.

“If you’re not going to be making any money in your equity options for three years, it is in your interest to leave,” Martin told The Post. “I agree with the decision to leave your current firm and go to a company and get stock at their current price.”


‘Far higher cash compensation’

While Meta is the most extreme example, the entire tech sector has sagged this year after reaching record highs in 2021. The tech-heavy Nasdaq composite index has fallen 12.3% so far in 2022, while Apple stock has fallen 9.9%, Amazon stock 5.3% and Google stock 5.7%.

With stock options becoming less valuable across the board, big tech companies are now realizing that cash is king, according to Richard Kramer, a tech analyst and founder of Arete Research.

“The big tech firms are simply paying far higher cash compensation since the top five collectively have $345 billion of net cash,” Kramer told The Post. “The battle to secure top talent has not slowed down.”

The compensation often comes in the form of “cash retention incentives,” which are paid out contingent on employees staying with the company for a set number of years, according to Brian Kropp, chief of human resources research at the consulting firm Gartner.

“As your stock price falls, the effectiveness of restricted stock units as a retention strategy becomes less and less,” Kropp told The Post.

And some engineers who are looking for cash rather than stock options have been able to negotiate massive payouts from Meta in recent months, according to Solomon, the talent agent.

“They’re getting better offers because Meta knows they have to compensate,” Solomon said.

Meta did not respond to questions about measures it’s taking to retain and attract talent.


‘Shares down a lot more than Meta’

While the likes of Meta and Amazon have been battered in 2022, some smaller tech names that boomed during the pandemic have felt even more pain as the Federal Reserve raises interest rates and investors pull back from tech stocks.

Shares of Netflix, which boomed during lockdowns, have tanked 33.9% this year. Videoconferencing company Zoom’s stock has plummeted from an all-time-high of $310 in September to just $116.28. And Robinhood, the stock trading app that capitalized on the “meme stock” boom in 2020 and 2021, traded as high as $70 shortly after it went public last summer but has since plummeted to less than $13.50.

The list goes on, with employees from PayPal, e-commerce company Shopify, beleaguered fitness company Peloton and electric carmaker Rivian all griping about their companies’ shares plummeting in recent months.

“I joined Rivian in January and I’m over 50% loss,” one Rivian employee wrote accompanied by a “facepalm” emoji.

The shakeout at lower-tier tech firms could help Meta and other big tech companies swoop in and recruit talent, at least partly making up for any stock slump-related departures, Kramer said.

“They are recruiting from hundreds of other enterprise software companies, etc. that have shares down a lot more than Meta,” he said.

Kramer added that the biggest tech companies don’t actively poach each others’ employees because it would be a “recipe for wage inflation.”

However, that doesn’t stop workers from one big tech firm choosing to apply for jobs at another.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
×