Facebook employees will face pay cuts if they move to work remotely

Facebook employees will face pay cuts if they move out of Silicon Valley to cheaper areas to work from home as Mark Zuckerberg predicts half of staffers will work remotely within five to 10 years

  • CEO Mark Zuckerberg said Facebook employee can choose to permanently work remotely on Thursday
  • But they are most likely going to take a pay cut based on where they chose to live and the cost of living
  • Facebook’s headquarters in in California’s Menlo Park, which has a median home price of $2.4million
  • This may be an obstacle for employees who planned to move to a less costly area to make their Silicon Valley paychecks stretch 
  • Employees must notify Facebook if they’ve moved locations by January 1, 2021
  • Zuckerberg’s livestream feed cut off while he was discussing the future of Facebook’s 50,000-person workforce Thursday morning 
  • During the video, Zuckerberg said he believes that by 2030 half of company employees will be working permanently from home 
  • He said employees already have the option to work from home through 2020 

Facebook employees will have the option to permanently work from home, but can expect a pay cut if they move to less expensive areas to continue the job.

Facebook CEO Mark Zuckerberg announced via livestream that he expects about 50 per cent of the company’s 50,000 staffers to work remotely within the next five to 10 years. 

Certain employees will be allowed to work remotely full time and will need to notify Facebook of any location changes by January 1, 2021.

Employees who hoped to take their large Silicon Valley paychecks with them if they moved to a less costly region have run into a caveat. 

Facebook CEO Mark Zuckerberg (pictured) revealed that employees will be able to work from home permanently, but  will take a pay cut based on their area’s cost of living 

‘That means if you live in a location where the cost of living is dramatically lower, or the cost of labor is lower, then salaries do tend to be somewhat lower in those places,’ said Zuckerberg.

‘We’ll adjust salary to your location at that point. There’ll be severe ramifications for people who are not honest about this,’ he added.

As of 2018, the median staff salary at the giant tech company was more than $240,000 annually.

Zuckerberg has taken a base salary of just $1 for the last three years, but received $22million in compensation by way of security in 2018.  Nearly $3million went towards private jets, according to Reuters. 

Menlo Park, the California city where Facebook it headquartered, has a median home price of $2.4million.

Facebook’s headquarters sits in California’s Menlo Park, where the median home price is $2.4million 

The company’s New York City office is settled in Manhattan (pictured) where homes sell for a median price of $945,000

The median income in the larger Bay Area nearly $1.5million less at $928,000, according to Zillow. 

Facebook’s New York City office is found in Manhattan, which has a median income of $82,459 and a median price of homes sold is $945,500. 

The median price of homes currently listed is $1.5million in Manhattan.   

Zuckerberg said the move to working remotely will help diversity Facebook’s staff and hiring pool. 

‘When you limit hiring to people who either live in a small number of big cities or are willing to move there, that cuts out a lot of people who live in different communities, different backgrounds or may have different perspectives,’ he said.

‘Certainly being able to recruit more broadly, especially across the U.S. and Canada to start, is going to open up a lot of new talent that previously wouldn’t have considered moving to a big city.’ 

Zuckerberg (pictured) said there will be ‘severe ramifications’ for employees who lie about their home address to keep their Silicon Valley salary

On Thursday, Zuckerberg’s Facebook livestream feed shut off while he was talking to employees about his prediction that more than half of the company will be working from home permanently by 2030. 

He was nearly done with his discussion about the future of the company’s 50,000-person workforce during a livestream on Thursday when it suddenly cut out and an error screen appeared. 

Zuckerberg did manage to finish most of his discussion which began with him saying: ‘I think it’s clear that COVID has changed a lot about our lives. That certainly includes the way that most of us work.’

‘We’ve already told people that through 2020, they can chose to work from home,’ he said, adding that 95 per cent or more of the company’s employees are currently working from home.

‘We are going to be the most forward-leaning company on remote work at our scale, with a thoughtful and responsible plan for how to do this,’ Zuckerberg said.

‘But we’re going to do this in a measured way over time’.

The billionaire then went on to give his prediction for the future. ‘I think that it’s quite possible that over the next five to 10 years about 50 per cent of our people could be working remotely.

‘That’s not a target or goal,’ Zuckerberg said, before pointing to the survey results from Facebook employees that found there is a lot of demand to continue working from home.

With the permanent remote work, Facebook has outlined criteria for an individual’s eligibility. 

First, an employee must be experienced. Secondly, Zuckerberg said employees must have ‘very strong recent performances, which includes two meets-all expectations or above ratings’.

Zuckerberg said the employees must be ‘a part of a team that is supporting remote work’.

Lastly, ‘you have to start by getting approval from your group leader,’ Zuckerberg added. 

Zuckerberg’s announcement comes as businesses (file image, employees working from home) adjust to the impact of COVID-19, which is also expected to reshape the future of office spaces after the pandemic retreats

Zuckerberg’s announcement comes as businesses adjust to the impact of COVID-19, which is also expected to reshape the future of office spaces after the pandemic retreats.

Shopify also recently made a similar announcement.  

Tobi Lutke, the CEO of Canadian e-commerce firm Shopify declared on Thursday the end of ‘office centricity’ and decided to keep company offices closed till 2021, allowing most employees to work remotely on a permanent basis after that.

Ottawa-based Shopify, which briefly became Canada’s most valuable company earlier this month, had more than 5,000 employees and contractors worldwide as of December.

‘As of today, Shopify is a digital by default,’ Lutke, who is also the founder of Shopify, said in a tweet. ‘We will keep our offices closed until 2021 so that we can rework them for this new reality. Office centricity is over.’

Square Inc and Twitter recently allowed employees to continue working from home permanently.

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Employees of companies in administration could access job scheme

High Court rules companies in administration can get access to the Chancellor’s job retention scheme – after Carluccio’s staff win landmark case

  • Carluccio’s, which has 2,000 employees, went into administration on March 30 
  • Unite took legal action concerned about potential redundancies over Easter
  • A judge directed that a government job retention scheme can be used by companies that go into administration during the coronavirus crisis
  • Learn more about how to help people impacted by COVID

Employees at companies that go into administration amid the ongoing coronavirus crisis could get access to the Government’s job retention scheme – after staff at restaurant chain Carluccio’s won a landmark legal case.

Carluccio’s went into administration on March 30, casting a shadow over the future of its 71 UK restaurants and 2,000 employees.

The Unite union took legal action because it was concerned that those workers who had not yet responded to an offer by the administrators faced the prospect of being made redundant over the Easter bank holiday weekend.

Insolvency laws mean administrators have 14 days to make staff redundant in order to avoid liability for their employment and wages, meaning Easter Monday was the last day those staff could be dismissed.

But High Court judge Mr Justice Snowden’s direction means the scheme, announced by Chancellor Rishi Sunak as part of the Government’s business support package, can be used by companies in administration during the Covid-19 crisis.

Carluccio’s went into administration on March 30, casting a shadow over the future of its 71 UK restaurants and 2,000 employees (pictured: Carluccio’s restaurant in Cardiff)

Experts say the ruling provides ‘valuable breathing space’ to administrators in the wake of the coronavirus outbreak, and ‘may help save jobs’ that would otherwise be lost among financially troubled companies.

Howard Beckett, Unite’s assistant general secretary for political and legal affairs, said the ruling could provide a boost to staff at other firms recently entering administration.

He said: ‘Time was running out for some of our members in Carluccio’s.

‘They faced the prospect of being dumped out of work this weekend.

‘In taking this action, Unite has secured them some wage security.

A High Court judge’s direction means the Government’s job retention scheme can be used by companies in administration during the Covid-19 crisis 

‘It is now essential that all those Carluccio’s workers who have either not received a letter or not responded to the letter from the administrator get in touch with their union, Unite, or the administrator immediately to ensure they are not dismissed and lose out on the opportunity that this court judgment has ensured.

‘We will not hesitate to go into court to ensure our members’ livelihoods are protected in these difficult times.

‘The new job retention scheme was put together in record time and its interaction with other areas of law, in this case insolvency law, needed to be looked at by the High Court.

‘This important decision ensures that no one is left behind in a hospitality sector reeling from the effects of the shutdown.’

He added: ‘This also ruling offers some hope to other workers who have been made redundant because their employers called in the administrators during this crisis, such as those at Beales and Debenhams.

‘I would urge these workers to speak to their trade union or contact the relevant administrator to find out if they can be helped in any way through these tough times.’

Administrators FRP, who were also called in after fallen high street giant Debenhams went into administration on April 4, said: ‘This provides valuable breathing space to administrators in the unprecedented circumstances created by Covid-19.

‘It may help save jobs that would otherwise be lost.’

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