That’s another way of saying incompetence.
If you want to roll the dice on a new employee then fire the old one. This kind of 10% cut results in losing your best who don’t wait around and just start looking on day one. Worse, they often leave after your round of cuts as getting an offer is outside of your timeframe.
“Don’t want to leave” is good, “can’t get hired anywhere else” is bad, and the presence of the latter makes it more desirable to leave even places which used to be fun.