Layoffs Due to Poor Staffing Plans- Not Low Performers

Layoffs Due to Poor Staffing Plans- Not Low Performers

Instead of calling layoffs for what it is (downsizing), they’re labeling affected employees as “low performers.”

Whether or not these individuals actually underperformed, this approach raises serious concerns about trust, morale, and long-term business strategy.

Let’s break this down from a process perspective. Why This Approach is Damaging to Company Culture?

Destroys Trust

When layoffs are disguised as performance issues, employees quickly realize that performance reviews aren’t about growth but justification for cuts. This makes people hesitant to be transparent or take risks in their roles.

Knocks Out Morale

Remaining employees start operating from a place of fear. If “low performance” is being used as a layoff excuse, will they be next?

Harms the Employer’s Brand

Top talent watches how companies treat their employees. When high-performing employees are suddenly labeled as poor performers for cost-cutting reasons, it damages the company’s reputation.

So what do companies need to keep in mind before firing and re-hiring? If businesses are letting go of experienced talent only to hire new employees later, that’s a process issue. Instead of constant layoffs and re-hiring, organizations should focus on:

1) Workforce Planning: Proactively assessing future staffing needs so companies don’t over hire in the first place. At The Lazy Millennial, this is done through the Succession Planning offers.

2) Internal Mobility: Upskilling current employees to meet business shifts instead of replacing them with new hires.

3) Clear Performance Metrics: Performance management should be transparent, not a tool for justifying layoffs. If someone is truly underperforming, there should be clear documentation and opportunities for improvement—not just a sudden termination.

Companies that prioritize sustainable workforce strategies over reactionary hiring and firing cycles will be the ones that retain talent, build trust, and maintain long-term growth.

If your company is looking for better ways to adapt, scale, and retain talent without breaking trust or morale, let’s talk about process-driven solutions that actually work.

What are your thoughts? Have you seen companies use “performance” as a cover for layoffs?

Other Useful Things

Jené Lee LSSBB, PMP

PROFIT/LOSS CONSULTANT Helping LARGE COMPANIES to SUPERCHARGE their EMPLOYEES to become ORGANIZATIONAL LEADERS that drive PROCESS IMPROVEMENT and INNOVATION to INCREASE company PROFITS EXPONENTIALLY ??????

16 小时前

Love this article, Adriana.

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