[wikfwikf]

It doesn't have to be this evil (although I have no reason to believe it won't at Amazon).

A good manager can do some 'managing out' simply by communicating to her team that there are reduced opportunities for promotion or new projects coming up, and that they may be layoffs. At any time in any workplace a certain fraction of people are actively looking for a new job, and another, usually much larger fraction are open to a move, might be hearing from recruiters, etc. A manager can create a mood of "if you have a decent offer, you should take it" without making people's lives miserable.

[bombcar]

If everyone is roughly performant this works. But if they are not, you may lose the good performers and keep the bad.

[HughJazz22]

If you put corporate interests over the individual ones, your point sounds reasonable.

I'd personally prefer equality in such conversations. I believe corporate can survive with mediocre performers. Just like many of us live with not so great companies we work in everyday.