Several major companies, including Meta, Microsoft, Amazon, and Intuit, have recently laid off employees under the guise of “underperformance.” However, the reality of these dismissals extends beyond simple performance metrics.
The Key Lesson: Doing Your Job Well Isn’t Always Enough
Employees who have delivered consistent, high-quality work for years—even decades—are finding themselves caught up in these layoffs. The stark reality is that merely fulfilling your job responsibilities does not guarantee job security.
To navigate and mitigate this risk, it is essential to understand how companies categorize employees as underperformers.
Defining Underperformance: A Subjective Process
At first glance, the concept of underperformance seems straightforward: companies reduce costs by eliminating employees who contribute the least. In practice, however, the process is often inconsistent and arbitrary.
Long-term employees at Meta, Microsoft, and other corporations have shared stories of receiving consistently strong performance reviews for years, only to be blindsided by a single negative evaluation that leads to termination.
While there is little debate that chronically poor performers—those who repeatedly fail to meet expectations despite warnings—may be valid layoff candidates, companies frequently apply this label to employees for reasons unrelated to performance.
Why Companies Frame Layoffs as Performance-Based
Organizations understand that large-scale layoffs can damage their reputation, making it harder to attract top talent. However, when a layoff is framed as the removal of “low performers,” the narrative shifts positively.
By positioning these actions as a push for excellence, companies project an image of maintaining high standards and fostering a culture of performance. This approach also helps them navigate potential legal complexities:
- Regulatory Loopholes: Many laws that require layoff notifications and severance do not apply to performance-based dismissals.
- Reduced Legal Risk: Performance-related terminations can help companies sidestep potential discrimination claims, as decisions can be justified by alleged deficiencies in work quality.
- Cost Savings: Companies may minimize severance payouts or avoid them entirely under the pretext of poor performance.
For older employees and members of protected groups, this rationale often makes it more difficult to challenge layoffs.
The Flawed Execution of Performance-Based Layoffs
Many large organizations already have mechanisms to address performance issues, including structured review processes and quotas that routinely identify a percentage of employees as low performers. These individuals are often removed through what is termed “unregretted attrition.”
However, during mass layoffs, managers are instructed to identify additional poor performers—despite already having culled underperformers through standard procedures. This leads to a rushed and inconsistent selection process, where decisions may be made based on factors such as:
- Seniority: “They’ve been here forever—maybe it’s time.”
- Popularity: “Nobody really likes them.”
- Visibility: “What have they done for me lately?”
Such arbitrary methods result in talented and hardworking employees being unfairly branded as underperformers.
Strategies to Avoid Being Labeled an Underperformer
Performance evaluations during layoffs are not as simple as ranking employees from best to worst. Instead, managers collaborate to discuss potential candidates for dismissal. The worst outcome in such a meeting is unanimous agreement that you should be let go—whether due to visible mistakes, internal conflicts, or an unremarkable presence.
However, an equally damaging scenario is if your name elicits no recognition at all. Even a history of consistently meeting KPIs may not be enough if your work is largely invisible outside your immediate team.
To safeguard your career, it’s critical to enhance your visibility and professional network. Here’s how:
1. Increase Your Visibility Across Teams
- Volunteer for high-profile projects.
- Take the lead in presenting work to senior leadership.
- Seek opportunities to engage with departments beyond your own.
2. Collaborate with Other Teams
- Act as a liaison between your team and other departments.
- Join cross-functional initiatives to expand your influence.
3. Gain Experience in Different Roles
- Explore lateral moves within your organization.
- Take on temporary assignments in different areas, even if they don’t align perfectly with your career trajectory.
4. Build a Strong Network Across the Company
- Establish relationships with leaders beyond your direct manager.
- Connect with peers in different departments.
- Proactively schedule informal meetings (virtual or in-person) with key stakeholders.
A Proactive Approach is Essential
When layoffs occur, the employees who are most visible, well-connected, and perceived as valuable contributors are more likely to retain their positions. If decision-makers at layoff meetings recognize your name and can recall your contributions, you stand a far better chance of survival.
Conversely, once an employee has been labeled as an underperformer, reversing that perception is nearly impossible. That’s why it’s crucial to proactively build professional visibility, influence, and relationships—before a layoff conversation ever takes place.
By taking these strategic steps, you can insulate yourself from the arbitrary and often flawed processes that dictate who stays and who goes.
Chris Williams is a former VP of HR at Microsoft and an executive-level advisor with over 40 years of experience leading and developing teams.
