Performance-Based Layoffs Blur Firings, Increase Company Risk

Microsoft Corp. and Meta Platforms Inc. are among companies targeting underperforming workers through layoffs, a practice that could obscure the line between legitimate workforce reductions and traditional firings.

The wave of job cuts over the past few years—largely at high-growth tech companies that significantly expanded their workforce during the Covid-19 pandemic—and workers increasingly sharing intimate details about their terminations online are bringing renewed attention to an increasingly common layoff tactic used by some employers.

This month, Meta CEO Mark Zuckerberg recently told the company in an internal memo that he “decided to raise the bar on performance management and move ...