Facebook delivers a hard-nosed warning to its workers

Meta Platforms  (META) - Get Free Report, formerly known as Facebook, is one of the largest technology companies in the world. The company’s Facebook and Instagram social media apps boast over two billion daily users, and WhatsApp, a leading global messaging app, has over 2.7 billion users.

The social media company has ridden a wave of success since CEO Mark Zuckerberg founded it in 2004. However, it’s also faced its fair share of controversy, including concerns about users' privacy and censorship of user accounts.

On August 17, Meta Platforms made another arguably controversial decision, and many workers may not like it.

Meta Platforms takes aim at hybrid work

Meta Platforms' popular products require a lot of innovation, which means it employs many highly skilled technology workers, including programmers.

The company went on a hiring spree during the COVID pandemic to meet surging demand for at-home entertainment. However, a big multibillion-dollar bet on the Metaverse took a toll on profits last year, resulting in a wave of cost-cutting that’s eliminated many jobs.

DON'T MISS: Meta Stock Leaps As Mark Zuckerberg Touts AI Pipeline In Solid Q2 Earnings, Revenue Outlook

In March 2023, the company announced plans to lay off 10,000 workers, bringing the total number of employees receiving pink slips to about 21,000 in the past year, roughly one-quarter of its workforce.

Mark Zuckerberg’s decision to reduce headcount has likely put workers on edge. However, cost savings are padding Meta Platforms' bottom line. In the second quarter, earnings skyrocketed 31% year-over-year to $3.23 per share. 

Increasing profitability has been a boon for Facebook's stock. Meta Platforms' shares have more than doubled since last fall.

Investors are happy with those gains, but fewer workers may mean longer development times for Facebook, Instagram, and WhatsApp features.

That may be particularly true now, given Meta Platforms has announced significant new artificial intelligence projects designed to boost advertising and user engagement.

More Business of AI:

• Here's the startup that could win Bill Gates' AI race
• Meet your new executive assistant, a powerful AI named atlas
• The company behind ChatGPT is now facing a massive lawsuit

The heavier workload could be one reason behind Mark Zuckerberg’s taking aim at workers again. On September 5, one day after Labor Day, employees assigned to an office must appear in person for at least three days weekly. If they don’t, they could be fired.

Meta Platform’s Head of People, Lori Goler, delivered the news in an internal memo on August 17.

The social media company's decision is rooted in the belief that requiring employees to return to work is key to boosting collaboration.

Company managers will track office attendance to ensure compliance. Anyone who fails to follow the new policy could see the decision impact performance reviews or, worse, result in termination.

Forget Facebook – We’re buying this tech stock

The change doesn't affect those who were hired entirely as remote employees. Management told them they should stay home, limiting office visits to four days or less every two months.

Still, Meta Platform's mandate could cause pushback among employees, many of whom may have been hired during the COVID-era when work-from-home options, including hybrid work, became a key hiring incentive across technology companies.

The company isn’t the only one hoping to return to in-office work like before COVID. Elon Musk banned remote work after he bought Twitter in 2022.