Recently, a major company had its first layoff (1000 staff and management) in its history. The company lost some great people because performance was not considered, only seniority. So, some people who were not the best performers did not lose their job but some, more junior, people had to go.

The company never wants to do that again. But, the performance rating system had gotten to the point where 96% of the professional staff had very good reviews. So, it would have been impossible to base the decision on performance. Now, a new evaluation system will be put into effect so that people are evaluated more critically and there will be a clear distinction between the good and the "less than good" performer.

Does this sound like a good change?