Cruel, but legal.
Because the algorithm just bases its decisions on performance, without respect to context, you don't hear any meaningful accusations of bias.
When you give supervisors agency to make decisions you get accusations (real or imagined) about various biased actions, or get accusations that the non-binary pregnant Pacific Islanders are under-represented, or do not represent some other constituency. It's bullshit 80% of the time and generates alot of wasted time, cost and bad PR.
It's a policy decision made because it is better for the company and isn't unlike how supervisors in industrial settings operate. If you've ever seen a very physical factory workplace (where the employees are at-will), they tend to eject broken people with chronic injuries as they age out. When I worked at a mall food vendor in high school in the 90s, it was routine for employees to be terminated for being 5 minutes late or too slow. The bigger lesson is go to school and avoid working in some shitty job where your welfare is a lower priority than the machines you serve.