Why performance reviews like Yahoo’s are out of favor

February 2, 2016 10:06 PM

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As Yahoo's Marissa Mayer was preparing to outline a cost-cutting plan to shareholders Tuesday during its earnings announcement -- one that included cuts to the struggling company's workforce -- a former employee filed a lawsuit alleging that the company's performance review system was discriminatory and violated federal and state laws on mass layoffs.

The lawsuit, filed Monday in U.S. District Court in San Jose, Calif., by Gregory Anderson, a former editorial director at Yahoo who was terminated in 2014, alleges that top managers manipulated employee ratings and specified the percentage of workers who should receive low performance scores. The su...

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