Mandatory distribution of performance reviews will always lead to cutting those with institutional knowledge. As one moves up, the number of people you are distributed against becomes smaller and smaller.
At some point, you are no longer talking about high performers and low performers, but those who are liked better. When the company then uses those reviews to decide who to cut, they are making a big mistake. It results in cronyism.
As you already pointed out, this is rampant in this company. Here's to hoping I get chosen for severance next time.
This company is headed for the trash heaps of history.