Are layoffs being used instead of firing due to regulations? Like it seems much better for morale to ratchet up a stricter performance bar and have forced exit

Are layoffs being used instead of firing due to regulations? Like it seems much better for morale to ratchet up a stricter performance bar and have forced exits at review time, rather than having these bulk layoffs. I can’t make it make sense absent regulations distorting the natural game theoretic dynamics.