If I were one of these managers I would be reluctant to take on the person because they’ve been designated as low performing already. Wouldn’t you just hold out for a stronger external candidate? Or is that the point?
Not necessary that the employee being let go is a low performer. Say you are a manager and get a budget cut. You have to let 4 people go. You might not have 4 low performers to cut. Large scale layoffs often involve letting go of good employees.