Facebook’s London employee pay surges past £260,000
Facebook’s UK employee headcount swelled 37% to 5,148 in 2021, filings with Companies House show, while its employee costs jumped to £1.4 billion, an average of £262,317 per employee and a 6% rise on the previous year. The overwhelming majority of Facebook’s employees work in London, with the lion’s share based at the firm’s gleaming new offices in King’s Cross.
It comes as Facebook’s UK arm posted bumper results, with sales up 39% on the previous year. Pre-tax profits jumped 21% to £230 million, despite a 19% drop in taxes paid to £30 million.
Facebook said the discrepancy was a result of a number of factors including a change in the rate of corporation tax and an increase in deferred tax credit due to its share-based employee pay package. The firm said its actual tax bill was higher, as those tax credits would crystallise in future years.
A number of senior execs at Facebook owner Meta have relocated to London over the past year, including president of global affairs and former UK deputy prime minister Nick Clegg.
The jump in hew hires in London last year comes amid reports Meta is planning to cut its global headcount for the first time as advertising revenue dwindles.
Meta boss Mark Zuckerberg reportedly told employees the firm would freeze hiring and would cut budgets across most teams in a bid to pare back costs. The firm reported its first ever drop in advertising revenue in July, with sales in the second quarter down 1% to $28.8 billion (£25.5 billion). It’s not clear whether employee headcount will fall in London as a result of the move.
Facebook’s employee bill is made up of salaries, pension contributions and share-based bonuses.
