That was their plan.
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Bigger concern for the company and upper management (but they are either completely clueless or it’s part of the plan) should be the talented and motivated employees with options leaving the company on their own accord for better opportunities.
And, with either no desire to replace them with quality people or the inability to recruit them anyways due to the trashed reputation of the company, the company is in a doom loop of talent pool degradation.
Good luck to the organization in trying to sustain itself and grow in the next few years with the life support organization it has. But, maybe that’s the point…