Some companies are really in financial trouble, but the others are stack ranking in their shadows: https://en.wikipedia.org/wiki/Vitality_curve https://en.wikip

Some companies are really in financial trouble, but the others are stack ranking in their shadows: https://en.wikipedia.org/wiki/Vitality_curve https://en.wikipedia.org/wiki/Vitality_curve The theory by a certain Jack Welch being that the bottom 10% are "non-producers". Since they don't produce, they can simply be fired without affecting the output of the company. And since some startups had legit trouble and laid off people because they really couldn't survive otherwise (but then typically laid off >10% or had multiple rounds of layoffs), the others can now do it without taking a reputation hit (again, in theory). VCs seem to be pushing this heavily. Personally, not a fan. Yes, it's legally not as easy to fire someone for low performance like it is to fire 10% because "the economy!!1", but it's also not impossible. No need to use scorched earth tactics...