Incompetent engineers and fat to trim I feel are seperate issues.
Layoffs seem pretty bad at identifying the incompetent from the competent from my experience. It seems to cut on all front, you're not sure if you're left with the best or the worse ones, but you saved a lot of payroll cost either way.
Or if you try to handicap teams by understaffing them, even competent engineers will need to reduce the quality of their output. This is when fat is trimmed in a bad way, where instead of getting rid of low ROI venture/projects/services/products and focus on the important, you just tighten the budgets accross the board for example.
Layoffs seem pretty bad at identifying the incompetent from the competent from my experience. It seems to cut on all front, you're not sure if you're left with the best or the worse ones, but you saved a lot of payroll cost either way.
Or if you try to handicap teams by understaffing them, even competent engineers will need to reduce the quality of their output. This is when fat is trimmed in a bad way, where instead of getting rid of low ROI venture/projects/services/products and focus on the important, you just tighten the budgets accross the board for example.