Across the country, workers at major U.S. companies are asking the same question: if the company can afford to increase executive compensation, why can’t it afford to keep its workforce intact? The question has become the defining labor issue of early 2026, as mass layoffs continue to roll through American corporations while executive pay packages grow larger and more elaborate.
The frustration is compounded by the way many companies have handled the layoff process itself. Reports of workers being terminated by email, locked out of systems without warning, or given mere hours to collect their belongings have circulated widely on social media. Some workers report being laid off during parental leave, medical leave, or shortly after receiving promotions and strong performance reviews — circumstances that raise serious legal questions about the true motivations behind the cuts.
When “Performance-Based” Layoffs Are Anything But
Several companies have labeled their 2026 layoffs as “performance-based,” but former employees have challenged this characterization with evidence that contradicts it. At Meta, for example, former employees who received top performance ratings and exceeded bonus targets reported being included in what the company called performance-based cuts. When high-performers are terminated alongside lower-rated employees, it raises the question of whether “performance” is the real criterion — or whether the label is being used to avoid the legal requirements that apply to mass layoffs.
This distinction matters legally. If a company characterizes individual terminations as performance-based when they are actually part of a mass layoff, it may avoid triggering WARN Act notice requirements. Workers who suspect this kind of mischaracterization should document everything and consider consulting with an employment attorney.
Class Actions Hold Companies Accountable
Class action lawsuits have historically been one of the most powerful tools for workers challenging unfair corporate practices. In recent years, class actions have resulted in significant settlements for workers affected by wage theft, discriminatory hiring and firing practices, data breaches that exposed employee information, and violations of federal and state employment laws.
Workers who have been laid off in 2026 should visit OpenClassActions.com to see whether their employer is the subject of any current or pending litigation. The site maintains an updated list of active settlements and ongoing investigations across a wide range of industries and claim types. Joining a class action as a class member is free — you don’t pay attorneys’ fees or costs unless the case results in a recovery.
OpenClassActions.org provides informational content about class action lawsuits and settlements. This article does not constitute legal advice.