My experience is the opposite, oddly. Middle management is at risk, sure. But upper management is not. Upper level contributors, though? Same risk as lower level contributors.
Lots of other Director-level and below were let go, as well. Impacts to IC-level employees was minimal in the engineering organization but common in other departments, e.g. product and marketing.
At least these higher-ups are gonna be OK, as they were making obscene amounts of money ($1M+/yr) and have all been in the industry for awhile, thus are well-situated financially. Every single one of them I know owns at least one home and routinely does all sorts of expensive traveling. Contrast that with laying off someone earlier in their career for whom a layoff might actually impose real financial hardships.
That said, as you correctly point out, obscene is the word of the day. I worked with these people for nearly 10 years, I know entirely too much about their personal histories and lives. They're each multi-millionaires, they're each fully capable of retirement today... Or, hell, many years ago, for that matter. They're going to be just fine once their bruised egos heal.
That's the funny thing. I was talking to one of them who I know for a fact is very well off, and he was saying he kind of wished that he had been laid off, as it would've been a huge payout (because of tenure) that would've allowed him to not need to find another job for almost a full year, which he'd do at a leisurely pace.
In my mind I'm thinking, you'd still want to work?! Dude, you're loaded, you're over 50, why not just retire if that happened?? But maybe he wouldn't know what to do with himself. I'm not nearly at conventional retirement age yet, but despite having enough money to be financially independent already, I'm not considering retirement, as I too wouldn't know what to do with myself.
Makes sense when managers are hired from within and retain the ability to do the job of the people they were managing. And 10000000% makes sense from a peter principle point of view: https://en.wikipedia.org/wiki/Peter_principle
Definitely does not work when managers are parachuted in from elsewhere or in a fungible "a manager is a manager and can manage any team". That happens in government a lot.