Meta Plans Biannual Performance Reviews as Bonuses Continue Amid New Layoffs

Meta is preparing to overhaul the way it evaluates and rewards its employees, introducing a new performance review system designed to make feedback, recognition, and compensation more frequent and meaningful. The move signals a shift in how the company manages talent at a time when it is also undergoing significant restructuring, including another round of layoffs.

Under the proposed framework, Meta will move from its traditional annual review process to two formal evaluation cycles every year — one at mid-year and another at the end of the year. The goal, according to the report, is to streamline the performance management process and ensure that employees receive clearer, more timely feedback on their work.

As part of this new approach, bonuses will be paid after both review cycles, giving high performers an opportunity to be rewarded more quickly rather than waiting an entire year. Equity grants, a key part of compensation for many Meta employees, will be calculated using the average of the two performance ratings, while salary increases will continue to be decided after the year-end review.

This structure is meant to ensure that strong contributions are recognised sooner and more consistently. In a fast-moving technology company like Meta, where teams frequently shift priorities and product cycles are short, leadership appears to believe that more frequent evaluations will better reflect actual performance and effort.

However, the changes to Meta’s reward system are being introduced at a time when many employees are facing uncertainty about their future with the company. The rollout of this new review and bonus structure comes against the backdrop of fresh job cuts, particularly in one of Meta’s most high-profile divisions.

The company recently confirmed that it plans to cut more than 1,000 roles, mainly within its Reality Labs unit. This division has been responsible for Meta’s work on virtual reality and metaverse technologies, areas that were once central to the company’s long-term vision. The new layoffs are expected to affect roughly 10 per cent of the Reality Labs workforce, with impacted employees being informed through internal channels.

These cuts reflect a broader strategic shift underway at Meta. Instead of continuing to invest heavily in virtual worlds and VR hardware, the company is now focusing more of its resources on artificial intelligence-powered wearables and smartphone-based features. This pivot suggests that Meta sees greater near-term opportunity and growth in AI-driven products than in the metaverse projects it previously championed.

For employees, this creates a mixed picture. On one hand, the new performance management system promises more frequent recognition, quicker bonuses, and a clearer link between performance and rewards. On the other, the ongoing layoffs highlight that Meta is still in cost-cutting and reallocation mode, with certain teams and skill sets being deprioritised.

Taken together, these developments show a company trying to balance financial discipline with the need to retain and motivate top talent. By offering more regular performance feedback and compensation opportunities, Meta may be aiming to keep high-performing employees engaged, even as it reduces headcount and reshapes its business around new technologies.

As Meta continues its transition toward AI-focused products, both the new review system and the latest layoffs underline a company in the middle of a significant transformation — one that will likely define its workforce and direction in the years ahead.