Meta Plans 300% Bonuses After Cutting 1,000 Jobs: New Reward System

Meta Plans 300% Bonuses for Top Staff After Cutting 1,000 Jobs

Just days after announcing over 1,000 layoffs, Meta is reportedly preparing to offer massive bonuses of up to 300% of base salary to its highest-performing employees. The move, part of a new performance review system called ‘Checkpoint’, aims to retain top talent in the competitive AI landscape.

Key Takeaways

  • New Bonus Structure: Top-rated ‘Outstanding’ employees (20% of staff) get a 200% bonus multiplier. ‘Excellent’ performers (70%) get 115%.
  • Elite Meta Award: A select few with ‘extraordinary impact’ will receive a 300% individual bonus multiplier.
  • Performance Scale: Four-tier rating: Outstanding, Excellent, Needs Improvement (50% bonus), Not Meeting Expectations (0% bonus).
  • System Overhaul: New ‘Checkpoint’ system starts mid-2026, with two annual reviews to speed up rewards.
  • Layoff Context: Bonuses plan emerges as Meta cuts 1,000+ jobs in Reality Labs, shifting focus to AI wearables.

Meta’s New Performance Review Framework

According to internal documents reviewed by Business Insider, Meta will introduce the ‘Checkpoint’ evaluation framework from mid-2026. The system is designed to simplify reviews while dramatically increasing rewards for exceptional impact.

Employees will be assessed on a four-tier scale. The ‘Outstanding’ tier, expected to cover 20% of the workforce, comes with a 200% bonus multiplier. The majority (70%) are projected to be rated ‘Excellent’, receiving a 115% multiplier, which Meta internally considers the benchmark for its high-performance culture.

Those marked ‘Needs Improvement’ will see their bonus reduced to a 50% multiplier. Employees in the ‘Not Meeting Expectations’ category will receive no bonus.

The Elite 300% Meta Award

Beyond the standard tiers, Meta plans to introduce a top-tier ‘Meta Award’. This recognition offers a staggering 300% individual bonus multiplier to a very select group.

The award is reserved for work deemed to have a “truly extraordinary impact” and is a clear strategy to retain high-value talent in the fiercely competitive, AI-driven tech sector.

Driving Efficiency in Reviews

Meta states the overhaul is also about efficiency. Internal data suggests managers spend nearly 80 hours yearly on performance tasks, while employees log over 330,000 hours per cycle on peer feedback. Notably, fewer than 25% of managers find the current feedback process useful.

The Checkpoint system aims to streamline this effort, making reviews more focused and meaningful.

Faster Rewards with Bi-Annual Cycles

As part of the restructuring, Meta will hold two formal review cycles each year: mid-year and year-end. Bonuses will be paid after both cycles. Equity grants will be calculated based on the average of the two ratings, and salary increases will follow the second review.

This approach is intended to help the company recognise and reward strong performance more quickly, rather than waiting a full year.

Bonus Plan Contrasts with Recent Layoffs

The timing of this reward system revamp is striking, coming amidst fresh job cuts. Meta recently confirmed plans to eliminate over 1,000 roles, primarily in its Reality Labs division.

The company is shifting resources away from virtual reality and metaverse projects towards and smartphone features. The layoffs are expected to affect about 10% of the Reality Labs workforce.

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