Most Meta employees will receive 5% less in equity rewards as Mark Zuckerberg cuts costs to fund heavy AI investment, The Financial Times reports

Most Meta employees will receive 5% less in equity rewards as Mark Zuckerberg cuts costs to fund heavy AI investment, The Financial Times reports

Meta Reduces Staff Equity Rewards to Fund AI Expansion, Reports Show

Meta Platforms Inc. (META.O) has reduced its annual stock option distribution by approximately 5% for most employees, according to reports from the Financial Times and Reuters. The adjustment, part of broader cost-management efforts, reflects CEO Mark Zuckerberg's strategic prioritization of artificial intelligence (AI) development, with billions of dollars allocated to expand the company's AI capabilities.

The reduction marks the second consecutive year Meta has scaled back stock awards for employees. While the 5% cut applies to the majority of staff, exceptions may exist for senior leadership or specialized roles. The move aligns with Zuckerberg's public emphasis on AI as a core growth driver, particularly as Meta competes with rivals like Google, Microsoft, and OpenAI in advanced AI model development and application.

Financial analysts have noted that Meta's equity compensation adjustments signal a shift in resource allocation. By redirecting capital toward AI research, infrastructure, and talent acquisition, the company aims to strengthen its long-term competitive position. However, the reduction in stock rewards may impact employee retention, particularly amid a tight tech labor market where equity packages remain a key incentive.

Meta's stock has shown resilience in 2026, trading near $350 per share as of February 19, despite broader market volatility in AI-focused sectors. The company has not publicly commented on the specifics of its compensation changes but has reiterated its commitment to "investing in transformative technologies" in recent earnings calls.

This development underscores the challenges tech firms face in balancing innovation spending with operational efficiency. As Meta navigates this strategy, investors will likely monitor the impact on employee morale, R&D output, and long-term profitability.

(https://www.reuters.com/sustainability/sustainable-finance-reporting/most-meta-staff-get-5-less-equity-rewards-zuckerberg-cuts-costs-ai-spending-ft-2026-02-19/): Reuters, Financial Times
(https://www.ft.com/content/071d5503-b3dc-46bc-bc55-28f92dbdd42a): FT Subscription Content
(https://www.marketscreener.com/news/most-meta-staff-to-get-5-less-in-equity-rewards-as-zuckerberg-cuts-costs-for-ai-spending-ft-report-ce7e5ddcd18ff125): Marketscreener Report