Facebook will take major steps in expanding and hiring its full-time remote workforce said company CEO Mark Zuckerberg. He also added that for employees working remotely, the company would adjust compensation for taxes and accounting purposes.
Facebook Inc (NASDAQ: FB) investors basked in glory earlier this week after CEO Mark Zuckerberg announced the new Facebook Shops feature. With Facebook shops, the social media giant looks to dip its toe in the rapidly growing e-commerce industry. After Zuckerberg’s Tuesday announcement, the FB stock hit its all-time high of $230 during the Wednesday trading session.
Yesterday, FB stock gained 0.62% and reached $231.39 with a market cap of $659 billion. After hours the stock climbed by 0.78% to $233.19.
Analysts are already turning bullish over Facebook’s recent move. Some of the industry experts say that this move will also help the company reach closer to its one-trillion dollar valuation. Apart from this, Zuckerberg also talked about the changing work culture amid the COVID-19 pandemic.
With governments worldwide announcing lockdown ‘working remote’ has turned absolutely common especially among tech industry employees. Almost all of the tech giants like Google LLC (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon.com Inc (NASDAQ: AMZN), Microsoft Corporation (NASDAQ: MSFT), and Facebook announced work-from-home during the lockdown. However, this has resulted in a major operational cost-cutting for these companies who are seeing it as a new normal.
Mark Zuckerberg said that in the next 5-10 years, he expects that 50% of Facebook employees will work remotely. “We’re going to be the most forward-leaning company on remote work at our scale,” he said. Besides, Zuckerberg also stated that they would see certain employees work remotely full time. Employees who want to work in a different location need to inform the company by Jan 1, 2020.
Facebook CEO Mark Zuckerberg Says Salary Adjustments Could Follow Soon
However, for employees adopting this route, they might have their compensation adjusted to the new location. Zuckerberg said that this is necessary for taxes and accounting purposes. “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.
Additionally, Zuckerberg said that Facebook is looking to aggressively hire its remote working employees in the coming days. Facebook will take a measured approach to open permanent remote work positions for existing employees. Zuckerberg thinks that this decision from the company will help improve employee retention.
Besides, this will help Facebook to hire more talent pool across the country who was not willing to shift to a new location. “It’s somewhat of an unfortunate and unsustainable setup for people to have a lot of these jobs they have to move to a small number of big cities,” Zuckerberg said.
It will also help Facebook in diversifying its workforce and spread economic opportunities across the country. “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,” Zuckerberg said.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.