Staff cuts can target high earners (so better programmers) as easily as they can target worse programmers.
Staff cuts mean:
- a lot of chaos and extra administrative work for everyone
- fewer people to do the same amount of work (even if some of the layoffs were people who only worked 10 hours a week, that's still 10 hours that needs to be done)
- less generous total compensation as the company tries to save more money on the remaining staff