That's not invalid by itself as long as everyone knows that the game is purely transactional. But it isn't fair to expect employee "passion" when their own continued employment is contingent on whether management thinks they're still necessary.
The easiest example to grok would be if you had hired a VP of sales who is an expert in B2C selling, then you pivot your product to a B2B offering. Or say you pivot into being a data-heavy product and your CTO has no idea how to build a data pipeline.
In these cases you could say “they will figure it out”, and sometimes that works. But sometimes you need to recognize that through no fault of their own, your employee now does not have the skill set they need to do their job, and find someone that does have those skills.
This is most pronounced in hyper-growth startups because bigger companies seldom pivot dramatically or change their scale rapidly enough that a motivated and smart employee can’t grow with the role.
So the claim is that employees should be so passionate that they are willing to make personal sacrifices for the benefit of the company.
But if things aren't working out the company is in its rights to immediately cut them lose. Shouldn't the company be willing to make some sacrifices for the employee?
This still seems to hold no?
Talk about entitlement. You think that when a company hires you, that should be a commitment to employ you forever regardless of need?
Passion can come from your own investment in the success of the business, through equity and through the opportunities that come to productive employees at growing companies, both before and after they leave. Or it can come from a belief in the mission, distinct from faith in the company. You can pursue the same mission at a different company. But I guarantee you one thing: passion does not come from a guarantee of continued employment.
I don't think the point is that you shouldn't get rid of a role that isn't needed anymore, that absolutely should be done. If you are expecting a level of commitment from an employee far beyond what you are willing to commit to them, something is broken.
That VP of sales and CTO will almost certainly do fine. The jobs need to be radically different for it to be worth the morale hit of firing people, and the cost of hiring and onboarding new staff.
Don't expect passion and dedication if the company doesn't offer the same guarantee back when the going gets tough or they change direction. You treat your staff like mercenaries, that's what you'll get.