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Meta employees are about to give up their jobs in the midst of a stock market crash

Facebook and Instagram’s parent Meta share has plummeted by more than 40% in the last six months. And some employees taking underwater stock options are aiming for an exit.

“I participated in a nearby meta [all time stock high]A Meta employee said this week in a popular thread on Blind, a corporate bulletin board with validated members, “What should I do?”

“Leave this junk place,” another “metamate” replied.

“The same ship,” the third person added, “already interviewed” at another company.

“Well, you’re supposed to think about meta, metamates, and me. Ask yourself if this train of thoughts is good for your company. It’s a joke … it’s terrible.”

Due to the plunge in Meta’s stock price, some employees have become restless.
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Meta is facing a plunge in workers as stocks fall from a record high of $ 380 in September to $ 216.49 on Friday. This slide started last fall as a series of terrible leaks put a lot of political pressure on the company and kicked in. Meta overdrives as it begins to feel billions of dollars in privacy changes from Apple and Google, which dominate the advertising business.

“People are definitely in the spotlight and worried about stock prices,” Michael Solomon, who manages software engineers through the talent company 10x Management, told The Post. About this — if this could be the beginning of their end. ”

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Meta’s share price has fallen by more than 40% after hitting a record high in September 2021.
Reuters

“Leave for your benefit”

When a software engineer joins a company such as Meta, Google, Amazon, etc., the reward usually consists of about 50/50 combinations of cash and stock options, and entry-level employees receive more cash and are experienced. Workers get more stock. High-tech payroll tracker levels.fyi.

In Meta, new employees are typically set to a limited number of stock units based on the average stock price of the company at the time of hiring. So while the employees who join in front of the company’s stock rocket have great benefits, they are still vulnerable to recession.

For example, a meta-employee given a limited stock unit worth $ 100,000 before and after the company’s September inventory peak will have about $ 57,000 left.

Also, opportunists at other companies, such as Microsoft, which has fallen 10.3% so far this year, are finding employment in beaten companies like Meta and getting more stock options at lower prices. The price, which means you can theoretically “buy a depression”.

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Many technicians have seen the value of stock options diminish.
Getty Images / iStockphoto

In response to a “metamate” post complaining about the blinds, one Microsoft employee said, “The only people who are doing well right now are those who are currently transferring to the company. I’m doing exactly that. , Headed for Meta. ”

Laura Martin, a tech and media analyst at Needham & Company, may find many technicians loyal to the company, but it makes financial sense to change jobs when the value of the option is high. Said.

“If you’re not going to make money with equity options for three years, it’s in your interest to leave,” Martin told Post. Get inventory at the current price. ”

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“I think a lot of people are wondering if Meta is about to get out of it, that is, if this is the beginning of their end,” said technical talent agent Michael Solomon.
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“Much higher cash rewards”

Meta is the most extreme example, but the tech sector as a whole has fallen this year after reaching record highs in 2021. The technology-intensive Nasdaq Composite has fallen 12.3% so far in 2022, while Apple stocks have fallen 9.9% and Amazon stocks are 5.3. % And Google shares 5.7%.

According to tech analyst and founder of Arete Research, Richard Kramer, big tech companies are aware that cash is the king, as the value of stock options has declined altogether.

“The top five have a total of $ 345 billion in net cash, so big tech companies are simply paying much higher cash rewards. The battle to secure top talent hasn’t slowed down.”

According to Brian Kropp, head of personnel research at consulting firm Gartner, compensation is often offered in the form of “cash retention incentives” and is paid on condition that employees stay in the company for a certain number of years. increase.

Google
Google stocks also fell in 2022.
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“As stock prices fall, restricted stock units as a holding strategy become less effective,” Klopp told Post.

Also, according to talent agent Solomon, some engineers looking for cash rather than stock options have been able to negotiate large payments from Meta in the last few months.

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

Meta did not answer questions about the steps taken to maintain and attract talent.

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Some small tech companies have been hit harder than Meta.
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“Share much more than meta”

Things like Meta and Amazon were hit in 2022, but some small tech names that grew rapidly during the pandemic were as the Federal Reserve raised interest rates and investors withdrew from tech stocks. , I felt more pain.

Netflix shares, which soared during the blockade, plummeted 33.9% this year. Shares of video conference company Zoom plummeted from a record high of $ 310 in September to just $ 116.28. The stock boom in 2020 and 2021 traded as high as $ 70 shortly after it was released last summer, but then plummeted to less than $ 13.50.

The list continues, with PayPal, e-commerce company Shopify, needy fitness company Peloton, and electric car maker Rivian employees all complaining that their stock prices have plummeted in recent months. I’m holding you.

“I joined Rivian in January and have lost more than 50%,” wrote one Rivian employee with the “face palm” emoji.

Shakeouts at lower tech companies could help meta and other tech companies raid and hire talent, at least in part, related to stock price slumps, Kramer said. Is said to be making up for.

“They are hiring from hundreds of other enterprise software companies and others that have a much larger share than Meta,” he said.

Kramer added that the biggest tech companies would be “recipe for wage inflation” and wouldn’t aggressively poach each other’s employees.

However, it does not prevent workers from one large tech company from choosing to apply for another.

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