While a single performance-based layoff can target underperformance, repeated rounds signal a systemic failure in leadership. It suggests managers are unable to hire, coach, or provide feedback effectively, making it a management problem rather than an individual employee issue.
The recent wave of mass layoffs has exposed the superficiality of corporate buzzwords like "empowerment." The concept has lost meaning because it was not backed by genuine job security or agency during difficult times. This has created a reckoning where employees see company relationships as more transactional.
Challenge the 'hire slow' mantra. Hiring is an intuitive guess, so act quickly. Once a person is in the organization, their performance is a known fact, not a guess. This clarity allows for faster decisions—both in removing underperformers and, crucially, in accelerating the promotion of superstars ahead of standard review cycles.
The most common failure mode for a founder-CEO isn't a lack of competence, but a crisis of confidence. This leads to hesitation on critical decisions, especially firing an underperforming executive. The excuses for delaying are merely symptoms of this confidence gap.
Exceptional people in flawed systems will produce subpar results. Before focusing on individual performance, leaders must ensure the underlying systems are reliable and resilient. As shown by the Southwest Airlines software meltdown, blaming employees for systemic failures masks the root cause and prevents meaningful improvement.
Firing decisions should be a function of both incompetence and business constraint. Not all underperformers are equal priorities. Some are like a "trash can on fire in the driveway"—a problem, but not the company's main bottleneck. Focus firing efforts on roles that are the direct constraint to growth.
A senior hire was instrumental in getting Snowflake's CRO promoted. Eighteen months later, that same person was found to be 'cancerous to the organization.' The CRO had to fire them and go on an 'apology tour,' a painful but necessary act of leadership to protect the company culture.
A manager's highest duty is to an employee's fulfillment, not just their performance. When a top performer is not personally aligned with their role, a leader should actively help them find a better fit—even if it means using their own social capital to place them at another organization.
Before labeling a team as not resilient, leaders should first examine their own expectations. Often, what appears as a lack of resilience is a natural reaction to systemic issues like overwork, underpayment, and inadequate support, making it a leadership problem, not an employee one.
The biggest blind spot for new managers is the temptation to fix individual problems themselves (e.g., a piece of bad code). This doesn't scale. They must elevate their thinking to solve the system that creates the problems (e.g., why bad code is being written in the first place).
When making tough personnel decisions, leaders should frame the choice not as a personal or purely business matter, but as a responsibility to the rest of the organization. Tolerating poor performance at the top jeopardizes the careers and stability of every other employee, making swift action an act of collective protection.