Meta Lays Off LA Employees for Misusing Meal Credits on Non-Food Purchases

October 22, 2024
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Meta, the parent company of Facebook, Instagram, and WhatsApp, has dismissed approximately two dozen employees from its Los Angeles office due to improper use of company-provided meal credits. An internal inquiry revealed that the affected employees had been spending their meal allowances on non-food items like wine glasses, laundry detergent, and skincare products—violating company policy.  

Meta offers meal vouchers at offices without on-site dining services, with allowances of $20 for breakfast and $25 each for lunch and dinner. These benefits are intended to support employees during long workdays, common within the tech industry. However, the investigation showed that some workers were misusing the program by ordering meals to their homes, which falls outside the policy’s intended scope.  

This move highlights Meta’s increasing focus on optimizing resources amid ongoing internal restructuring. Alongside these dismissals, the company has been shifting personnel across teams such as Facebook, Instagram, WhatsApp, and Reality Labs—the division responsible for its virtual reality and metaverse projects. While Meta has not disclosed exact layoff numbers, these staff reductions are part of a broader realignment strategy.  

The restructuring is a continuation of Meta’s push for operational efficiency. Last year, the company enacted several rounds of layoffs, affecting more than 20,000 employees in an effort to mitigate revenue declines and stagnant user growth. CEO Mark Zuckerberg has positioned these changes under the banner of Meta’s “year of efficiency,” emphasizing the need to cut costs and streamline efforts toward essential business objectives.  

Among the high-profile employees impacted by the recent layoffs is Jane Manchun Wong, a respected tech researcher and security analyst known for uncovering unreleased social media features. Wong joined Meta in June 2023 to contribute to Instagram and Threads but was let go amid the latest workforce reductions, underscoring the depth of the company’s restructuring.  

Despite these layoffs, Meta remains a competitive employer. The median annual compensation for its workforce, excluding Zuckerberg, stands at $379,050. The company’s efforts to improve efficiency appear to have reassured investors, with Meta’s stock (META) experiencing a 78% surge over the past year.  

These dismissals reflect Meta’s intent to enforce internal policies and curb the misuse of employee perks. As part of its restructuring strategy, Meta has been reallocating resources, reassigning employees, and eliminating roles to align with its evolving business goals. By balancing operational efficiency with employee benefits, Meta aims to position itself for sustainable growth in a rapidly shifting technology landscape.

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