That may have been true in the 70's and 80's. However, I worked for a 2000 person (startup) software company in the 90's that was acquired at 1.8B, another 4000 person (startup) software company in the 90's that was acquired at 3.4B, and then a few years ago, the acquirer of both was itself acquired for 18B.

I survived ALL the layoffs somehow. Boots on the ground agrees with "doesn't really work all that well" but the people collecting rents keep collecting. Given the size all of these received significant DOJ reviews though the only detail I remember is basketball sized court rooms filled with printed paper for the depositions. I'm sure they burned down the Amazon to print all that legalese, speaking of scaling problems.