Not true at all, having seen the other side. In a large enough organization, entire divisions will be cut if a product is missing. Sometimes productive people are on the wrong product that gets slashed to maintenance mode, or they have the wrong manager. Sometimes deep cuts are necessary because the product is failing and a productive person on a growth initiative is cut for subject matter expertise in the core product that will allow maintenance mode to continue. Sometimes tenure is rewarded. Sometimes directors don't see the full story because the managers can't be told of the layoff.

I’ve only seen tenure rewarded by below-market compensation.

Except for one case where a lowly guy eventually became the vice president because he out lasted (in lean times) everyone who was promoted ahead.