Meta's CTO Admits Morale Is Near an All-Time Low. The Numbers Explain Why.

Andrew Bosworth acknowledged what employees have been posting anonymously for months. The gap between Meta's record profits and its workforce's experience is the real story.

Written by Elena Brooks · Bureau Business · Jun 19, 2026

The Admission

Meta CTO Andrew Bosworth told employees on June 2 that morale at the company is "probably one of the worst it's ever been" — a striking acknowledgment from a senior executive at a company that just posted one of its strongest quarters on record.

Speaking during an internal "Tuesdays With Boz" session, Bosworth placed the current moment just below the Cambridge Analytica scandal — when up to 87 million Facebook users' data was harvested without consent — in terms of internal damage. "Maybe not the worst it's ever been in 20 years here, but it's probably up there," he said.

Meta declined to comment further to Fast Company.

What Actually Happened to the Workforce

The proximate cause is a restructuring that hit employees on two fronts simultaneously. Last month, Meta cut 10% of its workforce. At the same time, it reassigned another 10% of staff to mandatory AI teams tasked with training its models — a move that generated significant internal backlash.

In April, employees pushed back against a separate practice: Meta's use of mouse-tracking software to collect behavioral data for AI training. Workers circulated an online petition and posted flyers across U.S. offices. The resistance was organized enough to be visible, which is notable at a company that has historically maintained tight internal culture controls.

The Compensation Gap

The financial context makes the morale problem harder to dismiss as sentiment. Meta reported $56.31 billion in Q1 revenue — a 33% year-over-year increase — and nearly $26.8 billion in profit. Meanwhile, median total compensation fell from $417,400 in 2024 to $388,200, and the stock portion of annual raises was cut by 5%.

That divergence — record profits, declining pay — is the kind of incentive misalignment that doesn't resolve itself through memos. Employees on the anonymous workplace platform Blind have been explicit: posts with negative sentiment about AI at Meta reached 83% since late 2025, up roughly 300% from 2024, when 20% of AI-related posts were negative. "Meta is dead and depressing," one user wrote after the layoff announcements.

Bosworth's Fix

In a memo titled "Back to Day 1," Bosworth outlined a set of structural and cultural changes. Managers will be capped at 20 direct reports. The number of times employees are shuffled to new managers during restructurings will be limited. Leadership has committed to better explaining strategic shifts before they happen.

Bosworth also acknowledged that Meta's "boom/bust cycle of hiring left entire teams in the lurch" — a candid admission that the company's workforce planning created the instability it is now trying to repair.

On the softer end: improved break areas, increased travel budgets, and more spending on social events.

The Underlying Bet

None of this changes the core strategic direction. Meta plans to spend up to $145 billion on AI infrastructure this year. Bosworth's memo echoed a line now common across the industry: "AI won't take your job, but someone who knows AI might."

That framing puts the burden of adaptation on employees while the company controls the pace and terms of the transition. The question Bosworth's memo doesn't answer is what Meta is offering workers who adapt successfully — beyond the promise of psychological safety and a better snack selection.

Key takeaways

Meta laid off 10% of its workforce and forcibly reassigned another 10% to AI training teams, triggering what its own CTO describes as near-historic low morale.
Median total employee compensation dropped from $417,400 in 2024 to $388,200, and the stock portion of annual raises was cut by 5% — even as the company reported record Q1 profits.
Negative sentiment about AI in Meta employee posts on Blind reached 83% since late 2025, a roughly 300% increase from 2024.
Bosworth's remediation plan includes capping managers at 20 direct reports, limiting how often employees are reassigned to new managers, and increasing travel and social event budgets.
Meta plans to spend up to $145 billion on AI infrastructure this year, a strategic bet that is being funded, in part, by workforce cost reductions.

FAQ

Why did Meta lay off 10% of its workforce if it's posting record profits?

Meta framed the layoffs as necessary to fund its AI infrastructure buildout, which is projected to cost up to $145 billion in 2025. The company is reallocating capital from headcount to compute and model development, a strategic trade-off that its own CTO acknowledges has damaged internal morale.

What is the 'mandatory AI team' reassignment and why did it cause backlash?

Meta moved approximately 10% of its remaining staff into teams dedicated to training its AI models, without giving employees a choice in the matter. Employees also objected to the company's use of mouse-tracking software to collect behavioral data for AI training, leading to a petition and in-office flyer campaign.

How much did Meta employee compensation actually drop?

Median total compensation fell from $417,400 in 2024 to $388,200, a decline of roughly $29,000. The stock portion of annual raises was also cut by 5%, according to reporting by Wired.

What is Bosworth's plan to address the morale crisis?

Bosworth outlined structural changes including capping managers at 20 direct reports, limiting how frequently employees are reassigned to new managers during restructurings, and committing to clearer communication about strategy shifts. He also cited plans to improve workplace perks, travel budgets, and social events.

How does current Meta morale compare historically, according to Bosworth?

Bosworth said the current moment is 'probably one of the worst' in the company's history, ranking it just below the Cambridge Analytica scandal — when data from up to 87 million Facebook users was used for political targeting without consent — as the lowest point for internal morale.

Citations

Meta CTO: Company morale is probably 'one of the worst it's ever been' after layoffsAndrew Bosworth said during a June 2 internal meeting that morale is 'probably one of the worst it's ever been,' and outlined remediation steps in a memo titled 'Back to Day 1.'
Meta Q1 2025 Earnings Report (via Fast Company coverage)Meta reported $56.31 billion in Q1 revenue, a 33% year-over-year increase, and nearly $26.8 billion in profit.
Meta employee compensation data (via Wired, cited in Fast Company)Median total compensation at Meta dropped from $417,400 in 2024 to $388,200, and the stock portion of annual raises was cut by 5%.
Blind workplace forum data on Meta employee sentiment (via Fast Company)Posts with negative sentiment about AI at Meta reached 83% since late 2025, a roughly 300% increase from 2024 when 20% of AI-related posts were negative.