After Mass Layoff, Meta Plans 300 Percent Bonuses For Top Performers

Just days after announcing another round of job cuts, Meta is now planning a new bonus structure that could reward top-performing employees with bonuses up to 300 per cent of their base salary.

According to internal reports, the company will launch a new performance review system called "Checkpoint" by mid-2026 to evaluate and reward staff based on their performance.

The system aims to simplify Meta's evaluation process while offering higher rewards to those showing what the company describes as "exceptional impact."

Despite cutting over 1,000 jobs in its Reality Labs division, the tech giant appears to be focusing on motivating and retaining its most valuable employees.

Four-Tier Performance Rating System

Under the new system, Meta employees will be rated across four levels - Outstanding, Excellent, Needs Improvement, and Not Meeting Expectations.

Employees rated Outstanding (around 20% of staff) will reportedly receive a 200% bonus multiplier.

The majority, about 70%, will be rated Excellent, earning a 115% bonus multiplier, which the company views as its performance standard.

Those rated Needs Improvement will get only 50% of their potential bonus, while those in the Not Meeting Expectations category will receive no bonus at all.

To recognise exceptional contributors, Meta will introduce a new "Meta Award", offering a 300% bonus multiplier to employees whose work has shown extraordinary results. The company says this award is designed to retain high-value talent in a competitive market increasingly driven by AI and advanced technologies.

Focus on Efficiency and Streamlined Reviews

Meta claims the Checkpoint system will also improve efficiency. Internal data suggests that managers currently spend nearly 80 hours per year on performance reviews, while employees collectively spend over 330,000 hours providing feedback during each review cycle. Yet, fewer than 25% of managers find the existing process useful.

To fix this, Meta will now hold two formal review cycles each year - one mid-year and one at year-end. Bonuses will be distributed after both reviews, while equity grants will be based on the average of the two ratings.

Salary hikes will follow the second review, helping the company reward good performance more frequently.

Layoffs Continue as Meta Shifts Focus

The new reward plan comes at a time when Meta is undergoing major restructuring. The company recently announced layoffs affecting over 1,000 employees, mostly from Reality Labs, which handles its virtual reality and metaverse projects.

The decision reflects Meta's move away from the metaverse and towards AI-powered wearables, apps, and smartphone features. The job cuts reportedly affect about 10% of the Reality Labs workforce, with staff being notified internally.

While the layoffs have sparked concern, Meta's leadership says the new performance system will help build a leaner, more motivated workforce, focusing on innovation and results.