Meta offers perks to lift morale after AI shake-up; X moves to poach unhappy employees

What began as an effort by Meta to improve employee morale has quickly turned into a public talent battle with rival X. After the Facebook parent unveiled new workplace perks to reassure employees unsettled by layoffs and an AI-driven reorganisation, X moved to capitalise on the situation, openly encouraging affected workers to apply for jobs and pledging to "match or even exceed any snack budget offer".

The exchange shines a spotlight on a growing challenge facing technology companies as they race to build AI capabilities. While businesses are investing heavily in artificial intelligence, many are also grappling with employee uncertainty caused by restructuring, changing job roles and workforce reductions.

Meta seeks to calm employee concerns

Meta's morale push follows months of significant change inside the company.

According to reporting by Business Insider, Meta Chief Technology Officer Andrew "Boz" Bosworth acknowledged during an internal meeting earlier this month that employee morale had fallen to one of its lowest points in recent years.

Bosworth reportedly told employees that while the company had experienced difficult periods before, including the fallout from the Cambridge Analytica scandal, the current mood was "probably up there" among the most challenging moments in Meta's history.

The concerns come after Meta accelerated a major organisational overhaul centred on artificial intelligence.

AI restructuring triggers internal dissatisfaction

Meta recently eliminated around 8,000 jobs, representing roughly 10% of its workforce.

The company also reassigned at least 6,500 employees to its newly created Applied AI division, a unit established to support Meta's expanding AI ambitions.

The restructuring has reportedly generated frustration among some employees. Widespread dissatisfaction with both the transition process and the work assigned following the move, with workers raising concerns about career development, role clarity and the nature of their new responsibilities.

In an internal message seen by WIRED, Bosworth acknowledged that Meta had mishandled aspects of the transition.

According to the report, he told employees the company had undermined trust by failing to clearly explain how careers would evolve under the new structure and admitted Meta had done "an atrocious job" communicating its vision and support plans.

Perks become part of Meta's retention strategy

As part of efforts to improve employee sentiment, Meta is introducing a series of workplace initiatives designed to strengthen support and engagement.

According to reports, the measures include:

• Improved snack and beverage options in office kitchens
• Increased travel budgets
• More investment in workplace social events
• Greater management support
• A cap of 20 direct reports per manager
• Optional AI coaching tools

Bosworth also reportedly sought to reassure employees that Meta does not intend to replace workers entirely with AI, while emphasising the importance of adapting to AI-enabled ways of working.

Separately, internal memos seen by WIRED indicated that CEO Mark Zuckerberg told employees there would be no further mass layoffs. Applied AI Vice President Maher Saba also reportedly said reassigned employees would be allowed to apply for other positions within the company.

X sees an opening

Meta's attempts to rebuild morale quickly drew a response from X.

In a post highlighted by Business Insider, Nikita Bier, X's head of product, directly targeted employees affected by Meta's restructuring.

"Neglected Meta employees: X is hiring web and data engineers & scientists," Bier wrote.

He followed the recruitment pitch with a pointed reference to Meta's workplace perks, saying X would "match or even exceed any snack budget offer".

According to Business Insider, software engineering positions promoted by X carried annual compensation ranging from $180,000 to $440,000.

The remarks transformed Meta's internal workforce challenge into a public recruitment opportunity, with X positioning itself as a destination for engineers and data specialists looking for alternatives amid the ongoing changes at Meta.

The battle for AI talent is intensifying

The exchange between the two companies highlights how competition for talent is becoming increasingly intertwined with the race to dominate artificial intelligence.

Companies across the technology sector are restructuring teams, redirecting investment and redefining roles as AI becomes a central business priority. Those shifts can create disruption internally, even as demand for experienced engineers continues to rise.

For Meta, improving morale is not simply about better snacks or workplace perks. The broader objective is to retain employees and rebuild trust after a period of significant upheaval. X's public recruitment campaign suggests rivals are watching closely for opportunities to attract talent caught in the middle of that transition.