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In this paper, I draw from insights that I have gained working as an expert witness to understand the effects of performance evaluations and layoffs on workplace diversity. Some research has demonstrated that performance evaluations offer systematic advantages to white and men, while systematically disadvantaging women and minorities. Other recent research shows that layoffs tend to reduce managerial diversity, especially when strong legalistic safeguards are not in place. In this paper, I aim to shed light on the effects of both performance evaluation systems and layoff patterns for managerial diversity in U.S. firms. I then use the National Organizations Surveys to test hypotheses about the effects of performance evaluation systems and contracting workforces on the percent of women and racial-ethnic minorities in management.