Meta recently terminated approximately two dozen employees—in what is being dubbed as “Grubgate”—for misusing a $25 Grubhub meal credit perk. The credits, intended for employees working late or at offices without cafeterias, were reportedly used to purchase non-food items, such as laundry detergent, wine glasses and acne pads, the Financial Times reported.
Meta offers meal credits, which are redeemable through food delivery services like Grubhub or UberEats, to employees at smaller offices lacking cafeterias, totaling $70 per day: $20 for breakfast and $25 each for lunch and dinner. The allowances are specifically intended for employees to purchase meals for consumption at the office during work hours, and are not meant for personal use or non-food items.
The dismissals by the social media giant targeted those who had consistently abused the system over an extended period. Some of the fired staff had reportedly been combining their credits, while others had meals delivered to their homes. The company showed leniency toward workers who hadn’t exhibited a long-term pattern of breaching the policy, but only on occasion, by issuing warnings rather than terminations to those employees.
The incident has ignited intense debate within the company about the fairness of its decision-making process, exposing underlying tensions regarding employee benefits, corporate policies and ongoing cost-cutting measures.
Reactions among staff have been mixed, with some expressing concern over the harsh enforcement and potential for unintentional policy violations, while others defend the company’s actions, arguing that employees were aware of the rules.
Layoffs At Meta
Grubgate unfolds in the wake of Meta’s “Year of Efficiency” strategy initiated by CEO Mark Zuckerberg, which aims to tighten company policies and reduce costs.
The firings that resulted from the meal credit abuse have sparked discussions about their possible links to broader organizational changes, coinciding with a recently announced round of layoffs and restructuring at Meta that impacts divisions such as Instagram, Reality Labs and WhatsApp. This is part of the company’s ongoing efforts to streamline operations and allocate resources more efficiently.
“Today, a few teams at Meta are making changes to ensure resources are aligned with their long-term strategic goals and location strategy,” Meta spokesperson Dave Arnold said in a statement to the Verge last week. “This includes moving some teams to different locations, and moving some employees to different roles. In situations like this when a role is eliminated, we work hard to find other opportunities for impacted employees.”
This latest wave of layoffs comes on the heels of a previous series of job cuts in Meta’s Reality Labs division earlier this year. The company initially laid off 11,000 employees in 2022 due to overly optimistic growth projections following the Covid-19 pandemic.
During a town hall meeting that year, Zuckerberg cautioned employees about the difficult economic landscape, emphasizing the need to slow hiring and implement cost reductions. As part of the company’s new fiscal strategy, Meta said it would raise its performance expectations for staff.
The CEO even told workers, “I think some of you might decide that this place isn’t for you, and that self-selection is okay with me. Realistically, there are probably a bunch of people at the company who shouldn’t be here.”
Meta then reportedly rated thousands of its tech workers as “subpar.” According to the Information, the company’s vice president of remote presence and engineering Maher Saba told managers to identify people on their team who “need support” and “move to exit” poor performers “who are unable to get on track.”
An additional 10,000 employees were let go as part of ongoing restructuring efforts in 2023.
Source: Forbes
