To me it paints a terrible picture. My suspicion is that the dangerous bad hires are not the utterly incompetent people who will flail in place until removed. The dangerous ones are going to energetically do all sorts of peripheral, irrelevant work, try to insinuate themselves into a lot of 'process' type setups, and move around the company in a way that stops anyone from ever noticing that they can't actually do anything. I suspect a lot of BigCos have very weak immune systems against such mobile 'attacks'.
Is there not also a fear that an overworked person will become toxic?
Apparently not at my employer. My team was 10 people 4 years ago, and we're down to 6 now, without much dip in workload. We had someone leave about a month ago, and we're still fighting to get a job rec to replace that person.
I've also explicitly called out the FAANG hiring practices, which are frequently held up as the best practices in the industry by those doing the hiring. After all, who wants to be even partially responsible for hiring "that guy" when you can not or will not fire them later?
But, here's my point: I've been part of the process that hired "that guy". I was also consulted on the decision to fire "that guy" a month later. I was wholly on board with the action in both cases; and in the process we got two other great employees that we never would have hired if we were afraid of taking chances.