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Meta Fires Employees for Misuse of Meal Allowances on Personal Purchases

Meta has terminated around two dozen employees from its Los Angeles office for allegedly misusing company-provided meal credits, purchasing items such as acne treatment pads, wine glasses, and laundry detergent, according to a source familiar with the matter. The tech giant confirmed these dismissals after conducting an internal investigation, revealing that some employees used meal vouchers for personal items instead of food. Additionally, some workers reportedly had meals delivered to their homes rather than to the office, violating company policy.

Meta, known for its elaborate in-office dining services at its larger offices, offers meal vouchers to employees working in smaller locations without on-site food services. These credits—$20 for breakfast and $25 for both lunch and dinner—are intended to support staff working long hours at the office by covering meal costs. However, the investigation discovered that certain LA-based employees used the credits for non-food-related purchases or for meals consumed outside of work.

This news comes amid ongoing restructuring efforts at Meta. A Meta spokesperson, Tracy Clayton, acknowledged that the company has been making various organizational changes to align resources with long-term strategic goals. These changes have resulted in shifting some teams to different locations, reallocating employees to different roles, and eliminating positions when necessary. Meta did not disclose the total number of employees affected by these recent layoffs, which spanned across its divisions, including Instagram, WhatsApp, Facebook, and Reality Labs.

One of the more prominent individuals let go was Jane Manchun Wong, a well-known security researcher who had predicted upcoming social media features before joining Meta in June 2023 to work on Instagram and Threads. Wong’s layoff highlights the broader impact of Meta’s restructuring efforts, which follow the company’s more extensive layoffs last year.

In 2022, Meta laid off over 20,000 employees in multiple rounds of cuts, as part of an effort to reverse a period of revenue declines and stagnating user growth. CEO Mark Zuckerberg dubbed it the company’s “year of efficiency.” The company’s shares (META) have rebounded significantly, rising nearly 80% since last year.

 

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Meta Shares Surge 6% on Strong Q2 Earnings and Positive Revenue Forecast

Meta shares jumped 6% on Thursday after the company reported second-quarter earnings that exceeded Wall Street’s expectations and provided an optimistic revenue forecast.

Key Figures:

Revenue: $39.07 billion (up 22% from $32 billion a year earlier; analysts expected $38.31 billion)
Net Income: $13.47 billion, or $5.16 per share (up 73% from $7.79 billion, or $2.98 per share; analysts expected $4.73 per share)

Meta expects third-quarter revenue between $38.5 billion and $41 billion, surpassing the average analyst estimate of $39.1 billion.

CEO Mark Zuckerberg and CFO Susan Li highlighted the benefits of Meta’s investments in artificial intelligence (AI), noting improvements in content recommendations and advertising effectiveness. Analysts at Baird and Bank of America emphasized Meta’s strong AI-related performance and growth potential in ad conversions, digital assistants, and multimodal content creation.

Meta’s capital expenditures for the year are projected to be between $37 billion and $40 billion, up from the previous low-end estimate of $35 billion. Analysts at Barclays praised Meta’s execution pace in digital advertising and anticipated new AI-driven products.