While it seems like the most rational approach, it isn't. Companies don't typically include many employees in an improvement program, so when 'low performers' who haven't been covered by such a program are laid off, the remaining employees start to question the fairness of the performance evaluation and the company's commitment to its employees. [1]

The whole industry switched to stack ranking. I wonder what potential long-term effects could emerge.

[1] https://www.businessinsider.com/layoffs-use-cut-low-bad-perf...