To defend ICs against middle management a bit: a lot of IC work is dependent on decisions that need to be made by upper level managers. A 2 week contiguous workstream can take 2+ years easy once a few managers ask a few questions and need 10-20 meetings to get 5 bullet points clarified (so many projects can't even produce that). But if that person gets replaced their institutional knowledge and work readiness evaporates.

I've been on 10+ projects at big companies and have begged to do work. Mostly it was showing up to 3-5 meetings/week while managers try and figure things out, and their VPs reconfigure budgets, priorities, and resources. Sometimes I do the work and hold it until someone wants it.

There's usually no standard top-down view about what happens when 3 VPs change the scope on 5 projects. But in reality, that usually means 10-30 people downstream are paralyzed. This is also where the tension between "new work" and "scalable processes" comes into play (need a consultant?).

Add regulatory compliance and approval gates, and then..

If you're a contractor, it's often preferable to keep qualified people on staff even if they have nothing to do because it makes bidding for future contracts easier. You can say "I have X people qualified in Y ready to go" instead of "we'll have to hire X people to do Y".

But there's also just bad hires who can get through interviews, they won't just leave, and building a case to fire those people takes time and management that gives a shit. At a large enough program at a large enough company with uninvolved management (and they can afford to be uninvolved because the program's doing well on all tracked metrics), you can get away with being negligible deadweight for a shocking amount of time. I wouldn't recommend it because your team will hate you, you'll build no skills or relationships, and you'll be the first to go when cuts happen, but some people are fine with that trade for whatever reason.

Headcount increase means growth which means stock go up which means short term profit at the expense of long term quality of product or service. Soooo many people doing absolutely nothing and really no one cares. It is beneficial to have someone doing nothing as oppose to someone pro active, because doing things breaks things. Think about, companies optimize for inertia. Extraordinary levels of burocracy, governance, quality assurance...at some point it becomes impossible to move. Measures are in place not because they increase quality, but they reduce movement, and then this is perceived as safer. Think about it, less movement == safe. People doing absolutely fucking nothing while virtue signaling is a perfect fit.

This is really complicated in big companies.

The comment was likely less about positive corporate spin, more about rumors of Amazon's allegedly grueling, PIP-centered culture.