General Electric, once one of the most important companies in America started firing the bottom 10% of performers every yearwhen Jack Welch took over. Seems smart, right? Strangely, however, GE was driven into the ground by Welch. It made a lot of money, for a while, but it was burning down the house and now it’s a has been company. The routine firing wasn’t the only reason, but it was part of it.
Lately I’m seeing companies like Meta and Microsoft saying they’re doing large lay-offs of the lowest performers. Seems smart, eh?