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I think the more likely scenario is that:

a) the company is growing by leaps and bounds and would rather promote internally X% of existing employees. --or- b) the company is facing a downturn and would like to get rid of X% of existing employees.

In neither case does it have much to do with the actual people falling into or out of that X% (unless a perfectly just system is in place [and it isn't]).




Most firings I've seen have much more to do with the people involved (harrasment, incompetence, interpersonal problems) than with wild changes in the company's trajectory, though I will admit that at early-stage companies this could be reversed since things are much more uncertain.




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