I've noticed a concerning trend at my company over the past few years. We’ve been downsizing consistently, with layoffs and reorganizations happening annually. Initially, the severance packages were generous, but the last two years have seen a mix of Performance Improvement Plans (PIPs) and layoffs. This year, however, there haven't been any layoffs, but a significant number of employees, particularly those with higher salaries who aren't due for promotions, are being placed on PIPs. It's frustrating because the company is profitable, has no debt, and is sitting on substantial reserves, yet hiring is frozen. I’m starting to wonder if this is a broader trend in the industry for 2026, where companies are opting for PIPs instead of traditional layoffs. It seems like a way to manage headcount without the negative publicity that comes with layoffs. I’ve heard theories that this shift might be influenced by changes in laws or tax benefits, but I’m not sure. It feels like companies are increasingly using PIPs to push employees out while avoiding the costs associated with layoffs. I’m curious if others are experiencing similar situations in their organizations. Are PIPs becoming the new norm?
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