I agree, but the issue with hieing people is that your pipeline is also limited, along with other functions. So you need to heir more people to heir more people. You need more admin staff and so on. And the management needs to focus on that and build up the organization.

I also don't think its not as rare as you suggest finding people. Depending on your location and industry. It takes time to add people. Good people existing somewhere on the world wasn't enough, specially before remote work.

Also if you can grow your 50% margin business even a little bit faster by focusing on it, over the 5% margin business. It doesn't take that much focus for that to be the better choice. So if to achieve this 5% margin, lots of your best people work it, shifting those to the larger margin business might make sense.

But I agree, if you are a mature company that has the needed infrastructure to keep that product alive then doing so makes sense. Specially because maybe in the future it could be a more important better business.