For years, tech giants have been known for generous perks like free food and massages. Many of those services are provided by invisible contractors who are employed by outside firms and don't receive the same benefits or compensation as direct employees.
Doug Lawson, 34, was promoted two years ago to lead line cook by a contracting company that staffs many of the cafeterias at Facebook-parent Meta.
"Rent is not getting $160 cheaper. Food is not getting cheaper," said Lawson, who now makes about $26 an hour, $1 an hour less than before. "A lot of people couldn't take that," so they took a severance package and left, he said. "All of the bad practices predate the layoffs, but the layoffs sort of compound" the issues facing subcontractors and contingent workers, said Catherine Bracy, chief executive of TechEquity Collaborative, which advocates for tech workers. "That's because these workers are in extremely precarious positions."
Meta has laid off more than 21,000 full-time workers in multiple rounds of cuts as part of a larger push to become more efficient. The social media company offered those workers 16 weeks of severance pay and two additional weeks of pay for every year of service. Meta also agreed to maintain their health-care coverage for six months and connect the departing workers with job counseling and immigration specialists.
It would be "undoable, because it would just change my life completely - turn it upside down," he said about the shift change. "The best option was to take the severance."
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