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I inherited a team when a manager left a nonprofit that I worked at. This was in the Netherlands, and in my earlier management training here we were basically told that the list of valid reasons to fire someone does not include poor performance.

Of the team, like 4 people were pretty good, a couple excellent, and two were basically dead weight. One even worse, because he was a constant source of negativity. I spent ages working on ways to figure out how to help, cajole, and otherwise magically somehow improve these two bad workers ability to contribute to our company.

Eventually in frustration I went to HR, and was like, "look at all this shit I've tried, what else can I do?" The head of HR was like, "Why did you waste so much time. We'll fire them." I was shocked, because I didn't think that was possible! It turns out that there is always a way to fire someone. You have to give them severance pay, but better pay someone to leave than have them ruining morale for everyone.

I talked to one of the people I fired a couple of years later. He thanked me. He was working for Greenpeace at the time, and basically said that he felt trapped at a good paying job, and getting fired gave him motivation. I also ran into the negative guy, and he remains a worthless shit.

Anyway the point is that management should not rely on layoffs to sort out staff issues. Sort out your problems when you have them.