Every single successful business has the problem of "we have this large amount of money in bonuses that we would like to distribute out to our employees and we want to figure out equitable way to do it". Invariably they end up having the rank and group the employees to do that.
https://www.vanityfair.com/news/business/2012/08/microsoft-l...
Now, sure management science has advanced since then, and a lot of the ways that Microsoft implemented stack ranking at the beginning we’ve realized are counterproductive.
But that doesn’t really change the core principle that they end up ranking employees at some point in time
Additionally firing the bottom 10% is something that should happen naturally as you discover hiring mistakes. Of course just firing the bottom 10% when they are close to average performers is counter productive.
The shocker to me is that such a huge player in our industry applied it to a collaborative task like software development.