This can be a pretty blurry line.
If the engineer took some existing product and did nothing for 2 years other than design in additional failures that show up after the warranty has expired, I agree that's awful. However, I'm very skeptical of that. I've worked in some manufacturing orgs who try to pinch every possible penny they can, and I've never seen anything resembling that level of mustache-twirling villainy in engineering. Also, 2 years seems like an incredibly long time for someone to spend doing this and nothing else.
It's much more likely that the company asked the engineer to reduce the cost of the pump while still hitting the product's requirements (e.g. no failures during warranty period plus some margin), and while doing that, the engineer found the design was overspeced for those requirements and made some changes which reduced the pump's expected lifespan while still meeting that requirement.
Unlike what the OP is suggesting, this happens constantly...it's what engineering is.
Obviously I'm not OP and I'm reading between the lines here, but it's very easy to imagine someone hearing this story second-hand and completely misrepresenting it.