There are two types.
- %
- $
Scenario 1: A certain number/% of people that need to go is given. This was the most common way to go before; "you need to identify the bottom 10% of your organization". Didn't matter if 100% did a good job, but at least it was the lowest performers relative to peers that generally had to go. Sh---y, but fair enough.
Scenario 2: You need to "save the organization" X amount of dollars. This is where we are now, and why you are seeing also high performers, people that have been with the company for years and actually knows how thing works, and people in "high cost locations" going. To quote the song from the early two thousands: "It's all about the money". When you combine this with the requirement that every manager has to have 20(?) direct reports there is no chance in he-l that they are going to save anyone with a high salary no matter how good they are at their job, if they can keep 3 people in a "low cost location" at the same price. I don't blame them, either. It's gone from #oneteam #onedell etcl. to #saveyourownass, as long as you can.
Draw your own conclusions what that says about the state of the company.