Cisco used to look towards improving employees that were under performing. Now it's easier to just lay them off rather than put them on PIP.
Ever notice that VPs aren't LRd or PIPd? They're just moved to a new group and they get to keep their $300k+ salary plus 50%+ bonuses.
Once you get into regular LR's, why do the work of documenting poor performance? And you can do away with the time waste that was known as CPC.
Of course, VP & above don't get LR'd or PIP'd. Once you hit a certain level, everyone takes care of each other. You may get asked to resign, but that's OK as other companies will ignore that fact and gladly hire you and give you a new golden parachute. CEO's that either run a company into the ground, or fail to turn around a sinking company still get to work at a new company as a CEO and it's touted as a strategic move by the hiring company because of their prior experience.