I saw plenty of this at my old job. No one was safe, unless you happened to be on the CIO's "good side". I saw some very talented people laid off, some that had been there for 30 years, some that had worked tons of overtime, some that had knowledge of systems that no one else understood. Knowledge of the business was not a valued thing, nor was company loyalty. All this contributed to people (including myself) leaving on our own terms for a better work environment elsewhere.

Now I work at a company where business knowledge, technical skills and people skills are all equally valued. One of the best decisions I ever made was changing jobs (and changing locales in the process).