I agree for what its worth.
But what these executives and their supporters think is that productive employees will stay the same productive employees with the changes, and that only the unproductive employees will face consequences.
Of course this is ass backwards and we all know it, the innocent are always somehow the biggest victims in war ("blood in the streets" as this executive cheerily calls it).
I've had my own fantasies recently about telling the execs to spend two weeks sitting in the office between us devs and taking notes about what actually happens, to use as reference material when discussing policy changes. But then I realize that the very idea of requiring evidence to support one's decisions is what separates the lowly devs like me from the big-shot execs with name plaques on their office desk and a few extra zeroes on their paycheck deposits. Which is... quite depressing when you consider we're a STEM field, so evidence and logic should matter throughout our hierarchy, but then again, capitalism and corporatocracy have perverse incentives, I guess.
My morale is determined by how much work I have to do, how supported I am by my bosses, and how much input I have on the work I'm doing. That's... really it. Unless someone else is causing me to have more work by being here, or making my job harder, or blocking my input, then I don't really care whether they're doing "as much work as me" or how much they're getting paid. And in that regard, firing them -- which would leave me with more work, as I'd have to pick up the work they were doing -- would lower my morale, not improve it.