[Nickersf]

Is that a "formula"? Or does this happen in some cases where certain factors indicate that hiring at reduced salary for a similar but less experienced worker will yield the same results?

If you have an employee in the company for 20 years and they haven't grown or shown any desire to grow, but has gladly taken raises and promotions; that employee has kind of worked against their own best interests.

If you have a department that has been inflated for a period of time due to temporary need, be it because the need was there or because of 'trends in the industry' a re-org may need to happen to free up resources.

I'm not going to come at this with so much cynicism out of the gate. Most managers and business leaders aren't the meme of the evil top hat monocle man trying to punch down, especially in the professional industry.