Yes, I experienced this. About every year and a half, my company instructed each office to layoff a certain number. Low performers were targeted. If an office didn't have low performers, good performers were let go, and only the very best were retained. It cruelly encouraged and enforced exceptional output. It was heartbreaking, actually. But the pay was very good and we accepted it.

In that context I was told, "Tutor this guy (a fair worker, but not exceptional). We're going to let him go if he can't step it up." We worked together and I saved his job - it remains a very proud moment for me.

The company was a leader in its field, and its merciless practice of retaining only the very best performers contributed to its success.

Capitalism at its Darwinian worst, perhaps. Or its best, depending on your perspective.