This reads a lot like one of those WW2 low-risk sabotage manuals.
The business was relatively 'boring' - core product would move slowly. But management kept hiring bad people and losing talent. At some point the ship started to slow down.
Those smart people quit to competitors and even some launched their own company that is growing fast.
No bad employee was ever fired, their tasks were just allocated to the few good ones. Who started to quit en masse.