[throw93]

It's relevant because it proves that majority of the workers are competent. If you are not able to succeed with a competent workforce then you're just a bad CEO/leader and should step down.

Also it's wrong to assume companies are rational. If you are constantly in a cycle of hiring and firing employees, then it indicates you have a no long term vision and no skills to navigate the market.

[zmnd]

How does it prove it? Why the same logic doesn’t apply to the upper management, they were at the company when it had record profits. So they are competent enough to recognize that certain efforts are not needed anymore and it’s time to cut losses.

[throw93]

Same logic does not apply to the upper management because they are not directly involved in generating value for the company. Elon Musk is not out there writing code, Tim Cook is not assembling iPhone or even designing it. Telling someone what to do is not even close to the labor of person actually doing it. And when the "upper management" makes bad decisions and results in huge losses, bottom rung employees are the first one to go.