It's Jack Welsh playbook and it's stupid. I remember reading an interview with a head of company long time and he said something to the effect of "In any given company, top 20% of the workers push the company forward. middle 60% maintains status quo, and bottom 20% of the workers actively drag the company down." Interviewer ask: "why not just fire bottom 20%?"

His answer: "because, of the remaining, a new bottom 20% will be formed"