I should have elaborated.

You are right, hiring and firing is a political process, and so you are right, its vulnerable to manipulation by the shrewdest political players.

My assumption, however, is that the layoffs are managed by senior management, who are the shrewdest of all the political players. If they do layoffs right, they put the power of firing into the hands of people in a separate power structure. I mean people like external consultants, or a special committee.

If that isn't the case; and if mid-level management is providing the data to direct layoffs, then yes, its a colossal disaster.