Meta's 2025 Layoffs: What to Expect from Severance Packages

 

fired.fyi staff

Jan 15, 2025

Meta recently announced that they are doing a 5% layoff of their around 76,000 employees, primarily focused on those who received lower performance reviews. Since around 3,600 employees will be receiving severance packages in the coming months, it's important for those potentially affected to have some awareness of what they can expect. If you received a worse than expected performance review this review season, we have prepared a guide with layoff resources to help you plan for the future. We will give an overview based on past layoff trends at Meta as well as how Meta's severance package in 2025 stacks up compared to competitors. Additionally, by sharing your severance offer on fired.fyi, you can see how your package compares to others to help you negotiate the severance you deserve.

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Meta Layoffs 2025: What We Know So Far

Mark Zuckerberg shared the following announcement with staff internally, which will reportedly impact around 3,600 Meta employees. Based on this, Meta's layoffs will commence in mid-February 2025, and departure benefits should be in line with what they offered in previous years:

Meta is working on building some of the most important technologies of the world. AI, glasses as the next computing platform and the future of social media. This is going to be an intense year, and I want to make sure we have the best people on our teams.

I've decided to raise the bar on performance management and move out low performers faster. We typically manage out people who aren't meeting expectations over the course of a year, but now we're going to do more extensive performance-based cuts during this cycle, with the intention of back filling these roles in 2025. We won't manage out everyone who didn't meet expectations for the last period if we're optimistic about their future performance, and for those we do let go, we'll provide generous severance in line with what we provided with previous cuts.

We'll follow up with more guidance for managers ahead of calibrations. People who are impacted will be notified on February 10 or later for those outside the U.S.

Breakdown of Meta's Previous Severance Packages

Meta has historically offered quite competitive severance packages to employees that have been laid off, a parallel to its also competitive compensation packages. Here's a detailed breakdown of Meta's severance in the past:

November 2022 Layoffs

Employees received 16 weeks of base pay, plus 2 weeks for each year of service with no cap, known colloquially as the 16+2 formula, and received a payout for all of their PTO, plus continued stock (RSU) vesting through the current vesting period. They also received six months of health insurance coverage, and career support services like resume reviews and job placement assistance. Immigration support was also provided for departing employees on work visas.

March 2023 Layoffs

Meta treated these layoffs as a continuation of the previous round of layoffs, and so offered almost identical packages, though public information about specifics is sparse. This is in contrast to many other companies, where employees affected by later rounds of layoffs are generally offered substantially worse severance packages due to the declining state of the company.

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How Meta's Severance Compares to Industry Standards

With the broader context of peer tech company severance comparisons, Meta's offerings are demonstrably quite competitive:

Google

Google also offered 16 weeks of pay plus an extra two per year of service, exactly the same as Meta. However, the stock vesting acceleration period was longer at 16 weeks, which is much more valuable for affected employees at senior levels. Other benefits were similar, such as six months of healthcare coverage and access to career transition services.

Amazon

Amazon's severance package is less competitive, mirroring their compensation philosophy. Affected employees received 2 or 3 months of pay and benefits by default. They also received an additional 1 week of pay for every 6 months of service, with a minimum of 4 weeks of pay and a maximum of 20 weeks of pay. Healthcare coverage with a stipend for COBRA was included for the same number of weeks calculated with the above formula. Meta easily outshines Amazon in terms of both financial and healthcare support.

Microsoft

Microsoft's package is somewhat of a hybrid of all of the above. Reports vary, but generally mention a severance package of 2 months pay, plus 1 week for every six months of service. Microsoft also generally granted six months of accelerated stock vesting. Healthcare coverage continuation was a stipend covering 6 months of COBRA. While reasonably generous, Meta's package sets a higher standard.

What to Expect from Meta's Severance Packages in 2025

Based on Meta's comments on consistency and the competitive nature of the industry, employees can expect much of the same in 2025. While it may be of little solace, departing Meta employees may at least find comfort that they will be receiving some of the best severance packages across the industry:

Financial Compensation

16 weeks of base pay, plus an uncapped additional 2 weeks per year of service

Healthcare Benefits

6 months of health insurance coverage

Additional Support

Immigration assistance for work visa holders, and career services including resume reviews and workshops.

Conclusion

While we will have to wait for Meta's formal announcement to understand the specific terms of this year's layoffs, you can in the meantime submit past severance offers to get early access to our library of severance comparisons. Meta has consistently offered industry-leading severance packages during layoffs, and Meta's severance package in 2025 is likely to continue this leadership. If you do ultimately receive a severance package, submit your offer to maximize your exit. However, if you ever find anything about the layoff process or your severance package unclear, you should consult with an employment attorney.

We wish you the best of luck navigating this time.

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