On May 20, Mark Zuckerberg’s company Meta eliminated about 10% of its global workforce. The layoffs came after one of the most profitable quarters in Meta’s history: $56.31 billion in revenue and $26.8 billion in net income in Q1 2026. Revenue climbed 33%, the company’s fastest growth rate since 2021.

Employees were told the cuts would “offset other investments,” particularly the massive AI spending, which is projected to land between $125 billion and $145 billion this year.

But inside Meta, frustration and disengagement appear to be growing. Employees spoke with WIRED about declining morale, with one employee saying: “Everyone is unhappy; the only people who are not unhappy are, literally, executives.”

The anger isn’t only about job cuts. Employees are also reacting to another cut to the stock portion of annual raises, while Meta simultaneously offers eye-popping compensation packages – reportedly reaching $100 million – for elite AI researchers.

Then came another blow to trust: the rollout of surveillance software on U.S. employees’ laptops. The program tracks keystrokes, mouse activity, clicks, and screenshots to help train AI agents that can replicate human workflows.

Whether you agree with Meta’s decisions or not, one thing is clear: when employees feel expendable, watched, unheard, or disconnected from leadership, engagement collapses. And when engagement collapses, performance follows.

What can leaders and managers do differently?

1. Communicate with transparency. Employees can handle difficult news far better than silence, spin, or corporate jargon. Honest conversations build credibility.
2. Increase human connection. When organizations undergo rapid transformation, employees wonder: “Am I safe?” Managers who check in consistently, listen, and acknowledge concerns help stabilize teams psychologically.
3. Recognition matters. Employees who feel overlooked or replaceable stop investing discretionary effort. Great managers consistently reinforce the value people bring.
4. Involve employees in change. People support what they help create. Even small opportunities for input can dramatically improve buy-in and reduce resistance.

Engagement is not created through perks or slogans. It’s created through trust, respect, communication, and leadership behavior every single day. Companies can invest billions in technology. But if employees no longer feel valued, trusted, or connected, no amount of innovation will solve the culture problem that follows.