The Little Sins We Commit at Work—and the Bosses Who Are Cracking Down
Companies are strictly enforcing rules to show who’s in charge and control expenses
Companies are strictly enforcing rules to show who’s in charge and control expenses
Ever used the office printer for your kid’s homework assignment or scrolled Facebook Marketplace during an all-hands Zoom meeting? Fair warning: Your employer may be paying close attention.
Big companies on the hunt for efficiency are deploying perk police to bust employees for seemingly minor infractions that, by the letter of company law, can result in termination.
“We have had lots of requests for new controls,” says Katie MacKillop, U.S. director of Payhawk, which administers company credit-card accounts and watches for misuse.
Clients are asking Payhawk to restrict when and where company cards work. For example, a company can limit a lunch allowance to be available only on weekdays from 11 a.m. to 2 p.m. and be usable at Chipotle but not at Kroger . In partnership with Visa and Mastercard , Payhawk is developing a feature that sends real-time spending alerts to corporate finance teams and allows them to instantly block suspicious transactions by employees.
MacKillop’s firm doesn’t track what happens to employees who violate company policies, but she says there is little doubt employers are taking codes of conduct more seriously.
That helps explain reports of crackdowns at Meta , where employees were fired for spending $25 meal allowances on other items, Ernst & Young dismissing workers who watched multiple training videos at the same time, and Target canning employees who jumped the line to buy coveted Stanley water bottles ahead of the general public. The companies declined to comment on the incidents.
As the employer-employee power struggle tilts in companies’ favour, some businesses are using strict rules enforcement to make an example of rule-breakers or reduce payroll without having a real layoff. An employer feeling buyer’s remorse after a post pandemic hiring spree can use the company handbook to push out unwanted employees, says human-resources consultant Suzanne Lucas.
“When you are desperately hiring, you’re definitely overlooking things,” says Lucas, who cheekily brands herself the Evil HR Lady. “When you need to cut head count, you tighten up the rules.”
Workers argue many so-called perks are designed to increase productivity. A free meal is an enticement to stay at your desk. A recorded HR tutorial is less a reprieve from the awkwardness of in-person, sexual-harassment training than an invitation to keep plugging away while paying half attention to a video on your second monitor.
Why gin up excuses to fire people instead of simply announcing a round of job cuts? A few reasons, Lucas says.
Layoffs imply a business is struggling, and companies may want to avoid shaking the confidence of customers or investors. Employers often feel obligated—or are contractually bound—to offer severance packages to laid-off workers. Firing people for cause can save money, she says.
Then there’s the effect on a company’s remaining employees. Few things put workers on notice like seeing colleagues pink-slipped for minor offences. And, as a matter of principle, stealing is stealing even if it is a small amount of company money or time.
If a goal of harsh consequences is to keep people in line, then it’s working on Matt Tedesco.
When he read a Financial Times report that Meta fired employees who spent Grubhub meal allowances on things like acne pads and laundry detergent in a saga dubbed “Grubgate,” he flashed back to a similar episode at a defunct company where he used to work. He says a half dozen colleagues in sales were shown the door because they used meal stipends to buy groceries.
Tedesco, 47, describes himself as a rule follower in general and says he is doubly sure to do everything by the book in the current climate. He started this fall as a sales account executive at Hearst after being laid off by S&P Global last year.
“It’s hard to get a job right now—it took me months,” he says. “From an employee standpoint, my takeaway is don’t abuse any privilege because it’s not worth the risk.”
People in a range of industries admitted to me privately that they’ve broken rules like these in the past but said they’d never cop to it publicly. One likened today’s workplace to a street with a 30 mph speed limit, where you routinely get away with driving 37 mph and feel blindsided when you’re pulled over and ticketed. Enforcement levels fluctuate, this person said, and seem to be high right now.
Cracking down is a time-honoured tactic when companies feel financial pressure. In 2009, in the teeth of the Great Recession, a former private-client relationship manager at Fidelity told the Fort Worth Star-Telegram that he and three colleagues lost their jobs for running fantasy-football leagues at work, in violation of a corporate policy against gambling. The stakes in his league: $20. Fidelity had laid off 1,700 employees earlier that year.
And in 2018, when Wells Fargo announced significant head count cuts, the bank fired or suspended more than a dozen bankers who put dinners on the company tab and doctored the receipts. The bank said at the time that it pays for meals when employees work late, but some ordered takeout before the allowed hour and changed the timestamps on the bills.
Without knowing all the details, it can be hard to understand why companies police small dollars when they appear to spend freely on pricier items, says Jennifer Dulski , chief executive of Rising Team, a maker of employee-engagement software. She notes Meta offices are known for vending machines stocked with headphones, keyboards and other electronics available to employees free of charge, yet the company is getting serious about lunch money.
“They’re either weeding or just trying to make an example of behaviour they think is inappropriate,” Dulski says.
Employers have good reasons to be sticklers in some cases, says Cedar Boschan, a forensic accountant in Culver City, Calif. Companies can invite tax trouble if money earmarked for perks and business expenses is misspent on other things.
So, don’t put all of the blame for policy crackdowns on human resources. Save some for the one department that HR might beat in a popularity contest: accounting.
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Amazon, Google, Microsoft and Meta pour billions into artificial intelligence, undeterred by DeepSeek’s rise
Tech giants projected tens of billions of dollars in increased investment this year and sent a stark message about their plans for AI: We’re just getting started.
The four biggest spenders on the data centers that power artificial-intelligence systems all said in recent days that they would jack up investments further in 2025 after record outlays last year. Microsoft , Google and Meta Platforms have projected combined capital expenditures of at least $215 billion for their current fiscal years, an annual increase of more than 45%.
Amazon.com didn’t provide a full-year estimate but indicated on Thursday that total capex across its businesses is on course to grow to more than $100 billion, and said most of the increase will be for AI.
Their comments in recent quarterly earnings reports showed the AI arms race is still gaining momentum despite investor anxiety over the impact of China’s DeepSeek and whether these big U.S. companies will sufficiently profit from their unprecedented spending spree.
Investors have been especially shaken that DeepSeek replicated much of the capability of leading American AI systems despite spending less money and using fewer and less-powerful chips, according to its Chinese developer. Leaders of the U.S. companies were unbowed , touting advances in their own technology and arguing that lower costs will make AI more affordable and grow the demand for their cloud computing services, which AI needs to operate.
“We think virtually every application that we know of today is going to be reinvented with AI inside of it,” Amazon Chief Executive Andy Jassy said on Thursday’s earnings call.
Here is a breakdown of each company’s plans:
Amazon said a measure of its capex that includes leased equipment rose to a record of about $26 billion in the final quarter of 2024 , driven by spending in its cloud-computing division on equipment for data centers that host AI applications. Executives projected it would maintain the fourth-quarter spending volume in 2025, meaning an annual total of more than $100 billion by that measure.
The company—which gets most of its revenue from e-commerce and most of its profit from cloud computing—also projected overall sales for the current quarter that missed analysts’ expectations. Its shares slid about 4% in after-hours trading Thursday. The stock rose more than 40% in 2024 and was up nearly 9% this year before its earnings report.
Jassy said AI has the potential to propel historic change and that Amazon wants to be a leader of that progress.
“AI represents for sure the biggest opportunity since cloud and probably the biggest technology shift and opportunity in business since the internet,” Jassy said.
Google shares are down about 7% since its earnings report Tuesday, which showed disappointing growth in its cloud-computing business. Still, parent-company Alphabet said it is accelerating investments in AI data centers as part of a surge in capital expenditures this year to about $75 billion, from $52.5 billion in 2024. The spending will go to infrastructure both for Google’s own use and for cloud-computing clients.
“I think part of the reason we are so excited about the AI opportunity is we know we can drive extraordinary use cases because the cost of actually using it is going to keep coming down,” said CEO Sundar Pichai .
AI is “as big as it comes, and that’s why you’re seeing us invest to meet that moment,” he said.
Microsoft has said it plans to spend $80 billion on AI data centers in the fiscal year ending in June, and that spending would grow further next year , albeit at a slower pace.
Chief Executive Satya Nadella said AI will become much more extensively used , which he said is good news. “As AI becomes more efficient and accessible, we will see exponentially more demand,” Nadella said.
Growth for Microsoft’s cloud-computing business in the latest quarter also disappointed investors, leaving its stock down about 6% since its earnings report last week.
Meta, too, outlined a sizable increase in its investments driven by AI, including $60 billion to $65 billion in planned capital expenditures this year, roughly 70% higher than analysts had projected. Shares in Meta are up about 5% since its earnings report last week.
CEO Mark Zuckerberg said investing vast sums will enable it to adjust the technology as AI advances.
“That’s generally an advantage that we’re now going to be able to provide a higher quality of service than others who don’t necessarily have the business model to support it on a sustainable basis,” he said.
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