- Companies like Microsoft, Amazon, and Goldman Sachs have based sweeping layoffs on employee performance, but career experts say workers aren’t in the clear for simply hitting their KPIs. In the end, bosses can find other ways to fire you—here’s how to pivot and prepare.
Performance review season is fast approaching, and some employers are using the opportunity to make large workforce cuts. But even top-achieving employees aren’t safe from the chopping block.
Microsoft recently announced that it would be rolling out a round of layoffs, and two sources familiar with the plans told Business Insider underperforming employees will be considered in the reduction. While the $3.1 trillion technology company confirmed that it is planning terminations related to performance across the company, there is no confirmation of when or how many workers will be fired.
“At Microsoft we focus on high-performance talent. We are always working on helping people learn and grow. When people are not performing, we take the appropriate action,” a Microsoft spokesperson told Fortune, adding that the business typically backfills roles impacted.
The technology giant is just one of several employers who have based workforce reductions on worsened employee productivity—Amazon laid off more than 27,000 workers between 2022 and 2023, just after putting a large swath of them on performance improvement plans (PIPs). Goldman Sachs also dismissed hundreds of employees last year—part of the bank’s annual strategy of shedding low-performing staffers, according to people familiar with the matter.
As employers cast underperforming staff as deadweight during restructuring efforts, it’s easy for high achievers to feel secure amid the chaos. But career experts have a clear warning: Don’t.
Why high-performing workers aren’t always safe from layoffs
Just because an employee looks good on paper doesn’t mean they’re exempt from sweeping layoffs, Gabrielle Davis, a career expert at Indeed, tells Fortune.
“While strong performance is a key factor in retention, there are other considerations that companies take into account when making the tough decision to reduce headcounts such as financial health, organizational restructuring, and strategic shifts in business priorities,” she says.
These situations are often out of the control of employees—they have no influence over their company taking on a new business priority or the broader financial impacts at play. And if a business is really struggling, top achievers can’t stay afloat if the company is a sinking ship. But there are other times when highly productive staffers could get fired for reasons within their control.
“Consistently meeting your KPIs can provide a sense of security, but you never want to assume that you’re completely exempt from potential workforce reductions,” Keith Spencer, career expert at ResumeNow, tells Fortune, adding that it’s important to look at what you’ve done beyond the scope of your role.
“While strong performance is a key factor in retention, you still want to stay vigilant by diversifying your skills to enhance your versatility,” he adds.
Spencer’s point echoes a growing sentiment in corporate America—that if a worker isn’t constantly learning, then they’re falling behind. AI has ushered in a new era of upskilling, which has become an increasingly vital component of workers’ career health. Those who are hitting their goals may not be progressing beyond their responsibilities.
How to pivot—or prepare for the worst
If you’re feeling anxious about a potential layoff during performance review season, don’t despair. Career experts tell Fortune there are ways to turn things around. They agree that one of the most important steps a worried employee can take is to have an open conversation with their supervisor about the situation.
“Have an open conversation with your manager about your concerns and ask for measurable feedback. If you aren’t already, request regular check-ins to discuss performance and company health,” Davis says. “Being proactive about these conversations, while uncomfortable, is a great way to show initiative and commitment to your role and company.”
Davis stresses clearly communicating one’s value during the meeting by highlighting accomplishments, awards, and milestones that reflect high performance.
Spencer agrees, advising worried workers to approach the conversation as an opportunity to confirm they are meeting expectations, rather than expressing fear of being laid off. He also recommends taking on high-impact tasks in the meantime that will deliver positive results for the company, or consider volunteering on projects to meet organizational goals.
But ultimately, sometimes a workforce reduction really is out of workers’ hands, and so it’s best to always be on top of personal finances and job prospects.
“While it’s wise to remain optimistic, it’s also a good idea to prepare for the worst by updating your resume and other job search materials and tightening your budget to build up some emergency savings,” Spencer concludes.
