> If 7% of the company exited the company in a year because they were fired -- which seems quite high to me -- then even if you don't call it a layoff, it has many of the same characteristics as a layoff.
In my experience, this will have a way worse effect on morale than layoffs and will trigger regrettable attrition, as the smarter people in the room realize that you're always one reorg away from having a 'performance problem'. Sad.