Tech Performance Review Crackdown Raises Layoff Concerns
A tech performance review crackdown is unfolding at Amazon and Meta. Experts say the shift could signal more layoffs ahead. Amazon recently announced 16,000 job cuts. This followed 14,000 layoffs in October. Now, the company asks corporate staff to list three to five accomplishments. Although Amazon has requested summaries before, this time it formalized the process. The rule now applies across its corporate workforce.
Meta also changed its system. The company will rank employees into performance tiers. Top workers may earn bonuses worth up to 300% of base pay. However, lower-ranked employees could face greater risk. Therefore, many workers feel increased pressure. Experts say stack ranking is common in tech. Still, the timing matters. Layoffs across the economy hit their highest January level since 2009. Peter Cappelli from Wharton says companies often tighten reviews to shrink headcount. Firing for poor performance costs less than large layoffs.
Why Companies Are Tightening Reviews
Leaders may believe managers have been too lenient. As a result, firms want clearer accountability. Companies also continue adjusting after pandemic over hiring. During the tech boom, businesses hired quickly. Now, they want only the strongest performers. In addition, AI competition pushes firms to run leaner operations. Executives aim to reward high impact work.
Some experts say employees may leave voluntarily to avoid poor ratings. While this saves severance costs, it could harm company reputation later.
For now, the message feels clear. In today’s climate, performance matters more than ever.
