Thank you for sharing this important information. What does a company in the Netherlands do when an employee is underperforming? Do they get "PIP'd" like Amazon? Then, eventually let go with some standard severance package?

I can't talk about the Netherlands but if it's like France: the process is very different in the case of layoffs, where you want to reduce the workforce for economical reasons (e.g. shrinking revenues), and firing an individual employee. In the first case employees are not let go on the basis of the performances.

Firing individual employees for performances or because they made a serious offense is a different completely process. Whether they get a severance package or not depends on the reason of the firing.

Yes and no, as it is a difficult process because employer needs to prove it is not their fault that employee is not performing. To begin with you need to collect data over time, so pip is kind of a choice you’d go through to start collecting detailed info, then it might be that a simple course could help solve this if it is a knowledge based issue, then maybe there is another job in the company the employee could switch to, etc. Without any doubt employers do not like the process, it is easier to eliminate positions instead because it is not technically firing.