The Scoop: How ‘performance-related’ layoffs have become a PR issue

Twice in recent weeks, major organizations have laid off thousands of workers and cited poor performance as the cause.

Meta led the trend, cutting 5% of its workforce. “I’ve decided to raise the bar on performance management and move out low performers faster,” wrote Meta CEO Mark Zuckerberg in an internal (turned inevitably external) memo explaining the cuts. But many laid off employees protested the designation, claiming they had always met or exceeded expectations in performance reviews. Others said there was a correlation between medical or parental leave and their layoffs. Meta denied the allegations: “Simply because someone had a history of meeting or exceeding expectations does not mean they continue to consistently meet the bar.”

More recently, the federal government laid off thousands of workers, in most cases citing performance as the cause. Here, the reasoning is a bit more complex: it’s very difficult to fire federal workers at all due to union and other protections. But probationary workers, those who have only been with the government a short time, can be laid off. But a reason must be cited – and those reasons must be either performance or misconduct. And so many of these terminated workers are claiming they were wrongfully laid off despite having good performance – and planning to fight it out in court.

Why it matters: Most layoffs are framed as being the result of economic headwinds or mistakes from leadership. Perhaps there’s some aspect of managing out lower performers, but in general, being laid off isn’t considered an indicator of someone’s work quality.

In this case, someone putting on their resume that they were laid off from Meta in February of 2025 could automatically be assumed to be a poor performer. And that could have long-reaching effects.

Both Meta and the federal government chose to make this reasoning public. Sure, Meta technically sent it in an internal memo, but any communicator knows that this will immediately be posted on social media or in the press. In doing so, they painted thousands of workers with a scarlet letter that will be hard to wash off.

So, what’s the reason behind it? In the federal government’s case, there are limited legal reasons for layoffs, and performance can act as a fig leaf. But Meta’s decision is a bigger signal. Perhaps that the company is deferring blame for these layoffs, putting it on the workers themselves rather than any actions taken by leadership. Or perhaps it’s part of Meta’s tougher, more masculine makeover that’s coupled with its shift away from content moderation and fact checking.

We don’t know precisely. But we do know that these internal, personnel reasons have now become topics of public conversation. And while both of these organizations are looking to cut headcount while the market is in their favor, these actions could come back to haunt them when there’s a talent war again and workers are in high demand.

Or it could signal a new rebirth of a more cut-throat, driven environment that proudly keeps only those deemed the best. Whether or not this is a mistake or a calculated decision will be borne out in years to come – but these communications decisions are unlikely to be forgotten.

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Allison Carter is editorial director of PR Daily and Ragan.com. Follow her on LinkedIn.