It may not just be about cost cutting.
The concept of regular "purging" as a tool to keep people on their toes is based on instilling fear and uncertainty to drive certain behaviour or performance.
It involves the recurring threat or act of removing or punishing individuals who are perceived as dissenting or not conforming.
It instills a climate of fear, where individuals may be hesitant to express their opinions, challenge authority, or engage in independent thinking for fear of reprisal or consequences.
An axe is constantly swinging just over your head and you wonder if you are next. In reality, no one is really safe Including the axe wielder.