Big Tech companies, once known for lavish employee perks, are cutting back on benefits as they prioritize cost-cutting and efficiency in response to market pressures and shifting workforce dynamics, Business Insider reports.
This adjustment marks a turning point in Silicon Valley’s perks-heavy culture, a shift underscored by a recent episode at Meta, termed “Grubgate,” where several employees were let go after allegedly misusing meal vouchers.
For over a decade, companies like Google, Meta, and Snap provided extensive benefits to attract and retain tech talent, including free meals, wellness stipends, and on-campus amenities. However, as the demand for tech talent cools and layoffs continue across the industry, these companies now find themselves in a position to dial back on these offerings.
According to former tech employees and experts, some workers had grown accustomed to and, in some cases, exploited perks. “Grubgate” reportedly involved Meta employees using Grubhub vouchers to buy non-food items like household goods, which reflects a broader issue of “perks-grifting” or pushing the boundaries of benefit use. For instance, in previous years, some Meta employees were reported to have used travel stipends creatively by expensing tickets only to request refunds, while others repurposed wellness stipends to buy non-health-related items.
While some say this flexibility with perks became ingrained in Silicon Valley’s culture of innovation, it has also fostered a sense of entitlement among employees.
“You start to feel like it’s your money,” said a former Instagram employee.
Perks once considered differentiators—such as free meals and laundry services—were expected, with some employees even taking advantage of them in ways not originally intended, like bringing family members to company cafeterias.
Patrick Mork, a former Google Play executive, believes tech firms may have overextended themselves by prioritizing perks over clear cultural and ethical boundaries. Dilip Rao, CEO of Sharebite, echoed this sentiment, arguing that ambiguous perk structures can set employees up for misuse and penalization, rather than clear guidance on acceptable usage.
Recent layoffs, estimated by the job marketplace Trueup to total around 650,000 in 2023, have exacerbated the “use it or lose it” mentality among tech employees. As these companies tighten policies, some analysts believe the Big Tech perks era is fading. Bruce Daisley, former Twitter and YouTube executive, suggests that these changes reflect a shift in Big Tech’s culture away from extensive employee benefits towards a model focused on efficiency and cost management.
