I'm wondering....suppose a company did layoff for performance. Isn't it kind of dumb to broadcast that message to the world? I don't see the advantage but do see the risks.

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You would think with all the practice companies have had lately, the layoff process would be down to a science. It does seem like a high risk move, and I’m not really sure what the benefit would be of labeling it solely performance. I do know stock prices tend to soar when layoffs are announced, regardless the reasoning behind it.

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If it's a public company, the stock prices shoot up. It's all about the money.

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There is laying off to “restructure and be efficient”, and there is “layoff to save money because the company needs to lower OPEX”, one has a more positive connotation when it goes public, and the other call into question the long term viability and longevity of the company.

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You know...if one of the tasks of management is to plan and forecast demands/trends in their business and they mispredict demand and overhire...who really is the "low performer"? Also do companies have any concern that no one will choose to even apply in the future out of fear that they'll be mass labeled as a "low performer" on the way out? I'd avoid a situation like that...

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Cisco and other tech companies have been using performance based layoffs for a very long time. Managers are required to stack rank everyone, then the bottom x% is sent packing. If you tanked in that bottom x%, you got laid off.

It’s a good tactic to ensure top tier employees never worry about a layoff. And bottom performing employees are aware that they are at risk.

Reorg/restructuring means everyone is in fear for their job, and top performers are more likely to leave on their own, and you’re stuck with bottom and mid tier performers.

You are sort of assuming people struggling don't want to improve and the manager is lazy. Let's pretend (I know it's difficult) that high performers aren't born that way and/or for whatever reason the company can't gain access to them all easily. It isn't always the best solution to lead by fear or just run around firing everyone. Or at least be able to accept your part in the problem or solution. I mean in tech companies how exactly do you think 10% or so of these low performer people just snuck in on the interviews? We all know interviews are universally fair/accurate and determine who is highly qualified right?

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