That is what a lot of employees do. That is why these layoffs are probably happening, cutting 5% could have been done by freezing hiring and performance evals.
They're particular individuals who will take a stance like what you're outlining and sit in a limbo state outside of performance firing them. They bring down team moral, high performing employees feel cheated, etc.
I think it would be more accurate to say it exposes to the high performers that they are being cheated. Those employees are donating their time & effort to the company so that their bosses can drive fancy cars, fund yacht racing teams, take tourist trips to LEO, buy social media companies to use as toys, and pay off politicians to keep those same employees desperate. The owners want employees fighting amongst themselves for scraps because it keeps them distracted from their real enemy.
They're particular individuals who will take a stance like what you're outlining and sit in a limbo state outside of performance firing them. They bring down team moral, high performing employees feel cheated, etc.