It's true for all employers. Your job as a business owner is not to provide jobs to your employees, it's to keep the business afloat and maintain your income. There are limits to how much of a good person you can be, those limits are set by the economic system we exist in. Ignoring these limits will cause your business to fail.
It's a sad view and it's not entirely accurate but it has better predictive power than the rose-tinted glasses you and possibly your employer may be wearing. Profitability is the baseline requirement, all else comes after. That's how a market economy works. If you remain at a stable net-zero that's great as long as nothing ever changes but it means you're extremely vulnerable to any disruption.
To be clear: I'm not even talking about shareholders. This is true for private businesses too, maybe even more so. Profit means reserves, reserves mean being able to survive dips and downturns. But when the market changes you need to adjust and adjustment means the value of an employee can change drastically and it may be better to replace someone who was a great fit for the old market with someone who's a better fit for the new market. Sentimentality is a competitive disadvantage.
You can balk at the morality and decency of this and I'd agree with you but you shouldn't be upset about the persons, you should be upset about the system that is requiring those persons to act this way in order to stay afloat.