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Why London's Meta Employees Are Paid Lower Than San Francisco's

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  • Instagram head Adam Mosseri moves to London.
  • The company is reportedly considering hiring more staff for Instagram’s product team in the UK capital.
  • Meta employees are generally paid more in London than in Instagram’s San Francisco headquarters.

Instagram head Adam Mosseri moves to London. A spokesperson for Instagram’s parent company Meta told Insider that it was due to the “global nature” of Mosseri’s role.

London is the company’s largest engineering hub outside the United States, with a dedicated Instagram product team, the spokesperson added.

According to The Guardian, Mosseri is reportedly looking to hire more staff at its UK office. However, staff hired in the UK capital can be expected to earn less than those hired in San Francisco.

Reasons for this wage gap include the rising cost of living and the surge in demand for tech specialists in US cities.

Across Meta, San Francisco-based workers make more money than their London counterparts.

According to data from employee review site Glassdoor, the average product manager at Meta in London earns a base salary of $146,605 annually. According to the same data, the average annual salary for a product designer at the company is $115,150.

In San Francisco, salaries for the three product managers Meta hired last year ranged between $180,000 and $210,000. The base salary for a product designer hired in 2022 was $185,792, according to publicly available data on foreign workers.

The pay gap isn’t unusual, said Chris Abbass, who heads Talentful, a recruiting service for tech companies with operations in San Francisco and London.

“Inflation and demand for tech specialists are pushing up salaries across all regions, but there are still big differences between London and San Francisco.

Meta is one of the highest paying tech companies in the world, but hiring in London tends to be cheaper than hiring at the company’s headquarters in San Francisco.

He added: “San Francisco’s sheer volume of high-growth technology companies creates a huge demand for highly skilled workers that boost salaries faster than other regions.”

The cost of living is also a factor in wage disparity. San Francisco is ranked her 14th most expensive city in the world by Numbeo, a site that provides crowdsourced summaries of the cost of living in major cities. London is listed as her 40th most expensive city on the Cost of Living Index.

Even locals claim they need $1.7 million to be “financially comfortable” in San Francisco and $5.1 million to be considered wealthy by Bay Area standards, according to an insider report. .

“The cost of living for Californians is often higher. They can expect to drive more cars, pay for food, rent, personal medical bills, etc. So companies will raise salaries. There is pressure to do so,” said Abbas. “Infrastructure and social support are also pretty weak in America.”

According to Numbeo, the average monthly cost of living for a person in San Francisco is $1,351.37, excluding rent. Meanwhile, data shows that singles in London can live on an average of $1,100 a month before paying rent.

Residents of London also benefit from a stronger social support system than the United States, with free healthcare and better transportation infrastructure than San Francisco.

However, even taking into account such socioeconomic differences, there is still a large gap in salaries for skilled technical jobs between London and San Francisco due to the sheer number of high-growth technology companies, primarily in US cities. Abbas said there is.

London may be home to an exciting and fast-growing tech scene, especially for fintech companies, but San Francisco has historically been a major hub for major tech companies such as Meta. The salaries of skilled technical workers in the city have been inflated over the years by this demand.