That’s nonsense. It’s extremely hard to fire people in many corps. I’ve personally seen it take years even when everyone agreed (including management) someone needed to go. And often the paperwork threshold is so high that even people producing negative work aren’t fired; you just hope they eventually move on since you’re not giving them raises etc.
That’s when an org really starts to collect dead weight (actual dead weight).
Don’t get me wrong, shitty managers need checks and balances, but when an org loses so much trust in itself that it makes it impossible to remove pretty much anyone (except those trying to improve things usually, despite the rules), it’s going to get pretty bad soon.