The War on Average Employees: How “Performance-Based” Layoffs Became 2025’s Cruelest Trend

Something brutal is happening in corporate America right now. And if you’re not paying attention, you could be next.

In January 2025, Meta CEO Mark Zuckerberg sent a memo that would change how companies fire people forever. He announced the company would “raise the bar on performance management and move out low performers faster.” The result? 3,600 employees were terminated and publicly branded as the company’s worst workers.

Here’s the problem: many of them weren’t low performers at all. They had glowing reviews. They’d received bonuses. Some were even on medical leave caring for dying family members.

This is the first time in recent history that major companies have publicly labeled mass layoffs as “performance-based” cuts. And it’s creating a devastating new reality where being laid off doesn’t just mean losing your job. It means being branded a failure for the rest of your career.

If you’re navigating a difficult job market, understanding these tactics could save your career. Because what happened at Meta is spreading to Microsoft, Amazon, and beyond. By the time you finish reading this article, you’ll know exactly what’s happening, why companies are doing it, and most importantly, how to protect yourself.

This isn’t just about tech. It’s about a fundamental shift in how companies treat employees in 2025. And it should scare you.

What Actually Happened: The Meta “Low Performer” Scandal

Let’s start with the facts, because they’re more disturbing than you might think.

In January 2025, Meta announced it would cut approximately 5% of its workforce, targeting what Zuckerberg called “our lowest performers.” Based on Meta’s 72,000 employees at the time, that meant roughly 3,600 people would lose their jobs.

But here’s where it gets dark. Dozens of fired employees had “exceeds expectations” or “meets expectations” ratings on their most recent performance reviews. According to reports from Business Insider, many were blindsided by the termination.

One former Meta content manager, Kaila Curry, posted on LinkedIn: “I was let go today, but not because I was a ‘low performer.’ I frequently asked for feedback and was always told I was doing a good job.”

Another employee, Steven S., wrote: “Let’s be clear: that label is misleading, and for many of us, it’s flat-out wrong.”

The most shocking case? A Meta employee was fired while on leave caring for his terminally ill wife. This happened after he’d received a 120% performance bonus (which signals “exceeds expectations” at Meta). HR called unexpectedly during a manager’s meeting and terminated him without severance. His health insurance expired that same night.

Think about that for a second. A man taking care of his dying wife, who’d just been told he was performing 20% above expectations, was fired and labeled a “low performer” for the rest of his career.

Interview Guys Tip: If you’re currently employed and see signs your company might implement performance-based cuts, start documenting everything. Save performance reviews, emails praising your work, and any metrics showing your contributions. This documentation becomes critical if you need to defend yourself during interviews about why you left.

The Scarlet Letter Effect: Why This Is Different From Normal Layoffs

You might be thinking, “Layoffs happen all the time. What’s the big deal?”

The big deal is the label. And labels matter more than you think in your career.

When companies publicly announce “performance-based” layoffs, they’re essentially tattooing ‘FAILURE’ on your forehead. Other hiring managers know you worked at Meta during this period. They see the headlines. And suddenly, you’re not just unemployed—you’re “one of the low performers Meta had to get rid of.”

According to employment law experts interviewed by Fortune, this creates a stigma that traditional layoffs don’t carry. “It’s a terrible way to be labeled and is clearly unhelpful for anyone in a job market,” said Sally Maitlis, a professor of organizational behavior at Oxford’s Saïd Business School.

The result? Some Meta employees report they’re struggling to get interviews at other tech companies. Recruiters are ghosting them. Some have been forced to leave the tech industry entirely because they can’t escape the stigma.

One former Meta employee told The HR Digest: “I felt blindsided when I received the email. I have a strong track record, and there’s been no sign of any performance concerns over the last six months.”

This isn’t just unfortunate. It’s calculated. And it’s spreading.

Stack Ranking: The Rigged Game You Can’t Win

Want to know the dirtiest secret behind these “performance-based” layoffs?

Companies are forcing managers to label a specific percentage of their teams as underperformers, even when everyone is actually doing well.

It’s called stack ranking (also known as “forced distribution” or “rank and yank”). Here’s how it works: managers must place employees on a curve from best to worst, then automatically designate the bottom tier for termination. Even if that bottom tier is performing at a high level.

At Meta, managers were told to classify 15-20% of their teams as “below expectations,” up from 12-15% the previous year. That’s not based on actual performance. That’s a quota.

A former Meta senior engineering manager described the impossible situation on a recent podcast: “Imagine a scenario where you have spent months working with your team, building up their confidence and performance, then you’re told from leadership that ‘somebody’s got to be in that low bucket.'”

Even worse, an internal memo revealed that managers could include employees from HIGHER performance tiers if they didn’t meet their reduction targets from underperforming employees alone. Translation: if a manager couldn’t find enough “bad” employees to fire, they were told to fire good ones anyway.

Think about that. You could be exceeding expectations. You could have stellar reviews. But if your manager needs to hit a quota, and everyone else on your team is also doing great, guess what? You become the “low performer.”

Microsoft is implementing similar tactics. They’re using something called a “manage reward slider” that rates employees on a 0-200 scale. If you score an impact rating of 60, you get a 0% stock award, only a 30% cash bonus, and you’re placed on a performance improvement plan. All while your manager might think you’re doing just fine.

Interview Guys Tip: During job interviews, ask about how the company evaluates performance. If they mention stack ranking, forced distribution, or “performance curves,” that’s a massive red flag. Companies using these systems are essentially playing musical chairs with their employees’ careers.

Why Companies Are Suddenly Doing This (Hint: It’s Not About Performance)

So if these aren’t really about performance, what are they about?

Follow the money. It always comes back to money.

Meta is pouring billions into AI development, trying to outperform OpenAI. Amazon CEO Andy Jassy released a memo saying he expects “a reduction in total corporate headcount as AI-driven efficiencies take hold.” These companies need cash for their AI investments, and labor is the easiest expense to cut.

But here’s the genius (and cruelty) of the strategy: by calling them “performance-based” cuts instead of cost-cutting layoffs, companies accomplish three things:

1. They avoid admitting they miscalculated headcount during the pandemic hiring boom. Remember when tech companies couldn’t hire fast enough? Turns out they overshot, but they don’t want to admit that mistake.
2. They send a message to remaining employees that only “top performers” survive. This creates fear and competition, which theoretically increases productivity. (Spoiler alert: research shows it actually does the opposite and destroys morale.)
3. They get to backfill roles with cheaper labor. Notice how Meta said they’d be “backfilling” these positions? They’re not eliminating roles. They’re eliminating expensive employees and replacing them with less expensive ones.

According to organizational behavior experts interviewed by Fortune, this represents a fundamental shift in how tech companies view their workforce. “It highlights the pressure many tech firms currently feel and their willingness in this climate to sacrifice the reputations of their employees in order to sound performance-focused and business-wise to their shareholders,” said Sally Maitlis.

The cruelest part? Some companies are even admitting RTO mandates are designed to make people quit. Elon Musk and Vivek Ramaswamy, who are set to lead the new Department of Government Efficiency, literally wrote that return-to-office mandates would lead to “a wave of voluntary terminations.” That’s the quiet part being said out loud.

The Devastating Human Cost Behind the Headlines

Let’s talk about what this actually means for real people.

Stefan Mai, a former Meta senior engineering manager, described having to suddenly change his messaging to his team. One day he’s praising their work and building their confidence. The next day, he has to tell someone they’re in “the low bucket” because corporate demanded it. He called these “egg-on-the-face moments” that managers dread most.

Now multiply that across thousands of employees. People who:

• Relocated their families for these jobs
• Turned down other opportunities to join Meta
• Based their financial planning on their salaries
• Are supporting aging parents or children
• Just bought homes or had babies

And overnight, they’re not just unemployed. They’re branded as failures in their industry.

One Reddit discussion about Meta’s policies revealed an employee who was on a high-performing team. Everyone was exceeding their goals. But someone still had to be labeled “low performer” because of the forced distribution. That person, despite doing excellent work, is now effectively blacklisted from other top tech companies.

The psychological toll is immense. According to research on forced ranking systems, these practices create:

• Toxic workplace cultures where colleagues view each other as competitors rather than teammates
• Stalled innovation because employees become risk-averse
• Perverse incentives where gaming the system matters more than actual performance
• Anxiety and stress even among high performers who fear being next

Interview Guys Tip: If you’ve been caught in a performance-based layoff, reframe the narrative immediately. In interviews, you can say: “My role was eliminated as part of a 5% workforce reduction tied to AI investments, not individual performance. In fact, my last review was [positive rating], and I’m proud of [specific accomplishment].” This is honest and removes the stigma. For more on handling interview questions about leaving, check out our comprehensive guide.

How to Protect Yourself in This New Reality

Alright, enough doom and gloom. Let’s talk strategy.

If you’re currently employed, here’s how to protect yourself from becoming a victim of this trend:

Document Everything. Save every positive email, performance review, metric, and accomplishment. Screenshot Slack messages where managers praise your work. Keep a running list of your wins. If you get caught in a performance-based layoff, this documentation is your ammunition.

Watch for Warning Signs. Companies implementing these tactics often show signals first:

• Sudden emphasis on “performance culture” or “raising the bar”
• Introduction of new, more frequent review cycles
• Managers asking you to rank your teammates
• New executives from companies known for stack ranking (Amazon, Microsoft, GE)
• Pressure to return to office despite promises of remote work

Build Your Exit Plan Now. Don’t wait until you’re fired to start updating your resume and networking. Have active conversations with your network. Keep your LinkedIn current. Take calls from recruiters, even if you’re not actively looking.

Understand Your Legal Rights. Some of these practices may violate employment law, particularly if they disproportionately affect protected classes or people on medical leave. Document any discriminatory patterns and consult an employment lawyer if you’re terminated.

Create a Counter-Narrative Immediately. The moment you’re laid off, control the story. Post on LinkedIn (professionally) explaining the situation. Reach out to your network. Don’t let the “low performer” label stick. Most people understand that these corporate purges aren’t really about performance.

If you’re job hunting and worried about encountering companies that use these tactics, here’s how to spot them:

Ask Direct Questions in Interviews. When they inevitably ask “Do you have any questions for us?“, try these:

• “How does your company evaluate and rank employee performance?”
• “What percentage of employees typically receive each performance rating?”
• “Can you tell me about your approach to performance improvement plans?”
• “How did the company handle recent layoffs or workforce reductions?”

Research Glassdoor Reviews. Look specifically for mentions of “stack ranking,” “forced distribution,” “up or out culture,” or “PIP culture” (performance improvement plan). These are red flags.

Check Recent News About the Company. Google “[Company name] layoffs” and “[Company name] performance-based cuts.” See what employees are saying on Blind and other forums.

What This Means for the Future of Work

Here’s the uncomfortable truth: this trend isn’t going away.

As AI continues to advance, more companies will use “performance-based” layoffs as cover for reducing headcount. They’ll claim they need fewer employees because AI makes them more efficient. But they’ll brand it as removing “low performers” to maintain their best talent.

Some experts predict this could become the new normal. Instead of traditional layoffs (which come with bad press and potential lawsuits), companies will implement continuous “performance management” that slowly cycles out employees and replaces them with cheaper alternatives.

The question is: will employees accept it?

Early signs suggest no. The backlash against Meta has been fierce. Former employees are speaking out. Media coverage has been overwhelmingly critical. Even business publications that typically side with companies have called out the cruelty of these tactics.

But that might not be enough. Because at the end of the day, companies hold the power. And in a tight job market, desperate candidates will accept roles at companies using these practices because they need the income.

The real power shift will come if top talent starts avoiding these companies entirely. If the best engineers, designers, and leaders decide that no salary is worth the risk of having your reputation destroyed, companies will be forced to change.

We’re not there yet. But we might be heading in that direction.

The Bottom Line: It’s Not About You

If you’re caught in a performance-based layoff, I need you to hear this clearly: it’s not about you.

It’s not about your skills. It’s not about your work ethic. It’s not about your potential or your value as an employee.

It’s about financial engineering. It’s about stock prices and AI investments and cost-cutting measures dressed up in the language of meritocracy.

The same companies that spent 2021 and 2022 begging people to join them, offering massive salaries and benefits, are now treating employees as disposable. They over-hired during the pandemic boom, and now they’re correcting their mistake by scapegoating the people they hired.

Don’t internalize that. Don’t let it define you.

Your next employer will be lucky to have you. The key is telling your story in a way that removes the stigma and focuses on your actual abilities. Practice explaining the situation calmly and confidently. Focus on what you achieved, not what someone claimed about your performance.

And remember: the best revenge is success. Companies that treat employees this way eventually pay the price in reputation, talent quality, and innovation. You’ll move on to somewhere better. They’ll be stuck with a demoralized workforce and a damaged employer brand.

Taking Control of Your Career in 2025

Look, 2025 hasn’t been kind to workers. Between AI disrupting entire industries, return-to-office mandates, and now performance-based layoffs, it feels like the deck is stacked against you.

But here’s what they can’t take away: your skills, your network, and your ability to adapt.

Start building your career resilience now:

Document your accomplishments obsessively. Network constantly. Keep your skills current. Build multiple income streams if possible. And most importantly, never let a company define your worth.

Because the truth is, you’re not just a number on a performance curve. You’re not “low performer” or “high performer” or any other label some manager assigns you to meet a quota.

You’re a professional with skills, experience, and value. And in a world where companies are increasingly willing to sacrifice employee dignity for short-term financial gains, protecting your reputation and career trajectory is more important than ever.

The war on average employees is real. But you don’t have to be a casualty.

Stay alert. Stay documented. And stay ready to move when necessary. That’s how you win in 2025’s brutal job market.

The reality is that most resume templates weren’t built with ATS systems or AI screening in mind, which means they might be getting filtered out before a human ever sees them. That’s why we created these free ATS and AI proof resume templates:

---