Wow, what industry are you in?
If my company did that i would be fearing for my job or their margins xD
Public sector, Civil Service, at the minute, so job security is pretty good fortunately! It does seem like they do like to have a good clear out every year though.
a lot of people theorise it's to get out the 'old guard' who are on the top of the legacy pay brackets (and probably very ready to leave anyway) so they can then employ fresh meat in the same positions. They can then start them on the lowest rung of the ladder possible and save some cash

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