I am not saying that, I am saying that if a division can be run with half the people, there is nothing wrong in firing 40% of the people in that division, just to have a little overhead in case of emergencies.
Sure, in the platonic ideal of that example. But in the real world, firing 40% of a division will almost always mean a higher workload for the 60% remaining, which in turn leads to lower quality of life for those people, which often leads to higher turnover and projects getting dropped / mistakes getting made / etc.