I'm not a fan of this style of management at all. I won't knowingly go to work for a company that behaves in this manner. I've read that Netflix does it, and I've seen inferences that they acquired the practice from Disney. If you have a low performing employee that you want to get rid of, fine. Arbitrarily destroying the lives of a percentage of your workforce in an annual purge is not OK. People always seem to put…
Firing a person should not destroy their life. Something else is really wrong if this is the case.
Sizable companies take a month to bring in a new employee in the best case.
Most hiring managers are skeptical of people fired in a mass "underperformance" firing.
Toss in the fact that most people have never been fired and it's a massive blow to the ego. And also that it's terrible to communicate to your spouse and children that you've been fired for doing a bad job at work. That's a recipe for depression. Which makes it even harder to find work again. Which exacerbates the depression. And you're living on credit. And the bills are piling up. And you are starting to get phone calls.
If you can't jump right into a new job, it's a hard situation to be in, no question about it.