Can someone explain how burning out your employees, freezing hirings, possibly laying off a large number of your employees, in a market where people are actively quitting en masse... is supposed to increase productivity? Or are company execs just under the impression that "the beatings will continue until morale improves" was seriously good leadership advice?
Yes, Team of 5 and 1 person is coasting. Get rid of the 1 and you just reduced burn by 20%. You lose the output of the coasting team member, but that's small to begin with by the scenario's setup. If you believe coasting is contagious (why am I working so hard when clearly I don't have to like this other person), you could potentially see a boost in output. Of course, this needs to be weighed against the risk of ever…
The market where people are already quitting?