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This is way too simplified.

May as well be shutdown of a department or project, where everyone gets off-boarded. Believe a lot of the recent GOOG reductions included very senior people who just happened to be on low-priority projects.



A possible counterassumption:

You are on low-priority projects because you aren't trusted on high-priority projects or have been out-maneuvered for them by other senior team members, or don't have enough political capital to convince others of the importance of your project to make it high-priority.




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