ByteDance has embarked on a comprehensive reform of its performance evaluation system for the first half of 2025, revamping appraisal standards and redefining grading criteria for levels such as M, M+, E, and I. The objective of this reform is to "refocus on the core of value creation" and establish a talent development pathway characterized by a solid foundation, innovative incentives, and elite recognition. Under the new framework:

• The M level signifies meeting expectations, with an increased proportion of employees falling into this category.
• The M+ level will see a decrease in proportion, accompanied by heightened standards.
• The distinctions between the M- and I levels have been clarified: M- indicates a need for performance improvement without necessarily leading to separation, whereas I may result in position adjustments or separation.
• The E level will now recognize a broader spectrum of employees for their exceptional contributions.

This reform aligns with ByteDance's previously announced Talent Concept, Anti-Bureaucracy and Involution Test, Six Major Diseases of Packaging Output, and other initiatives, collectively driving a holistic enhancement of the company's talent management and performance evaluation system.