MENLO PARK, CA – Meta Platforms (NASDAQ: META) has reportedly instructed its managers to designate a higher percentage of employees with a “below expectations” performance rating in the company’s upcoming mid-year reviews. The directive, revealed in an internal memo obtained by Business Insider, indicates a continued push for efficiency and cost reduction within the tech giant.

According to the memo, Meta is asking managers to place 15% to 20% of employees in the “below expectations” tier for teams of 150 or more. This marks an increase from last year’s target of 12% to 15% for the lowest performance bracket. The move follows closely on the heels of Meta’s recent layoffs of nearly 4,000 employees, many of whom were identified as low performers.

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Company executives are increasingly leveraging performance management to streamline teams and curb expenses, a strategy that aligns with a broader trend across the tech industry. Many tech firms are prioritizing efficiency, reducing management layers, and simultaneously boosting investments in artificial intelligence.

This renewed emphasis on performance management suggests Meta is doubling down on its efforts to optimize its workforce and operational structure as it navigates a competitive technological landscape and continues to invest heavily in future technologies.

The implications for employee morale and retention remain to be seen as the company implements these stricter performance guidelines.