The dynamic I saw at a FAANG-adjacent company when I worked there was wild between the contractors and FTEs. If an FTE could get one or two contractors reporting to them, they'd hand over all the work, put their feet up and take it easy, make fun of the contractors, and then if there were any good results jump in to take credit for those at meetings with upper management which the contractors were not invited to.

So in that case yes, with a two-tier employment system it enabled FTEs to be de factor retired while contractors carried their palanquin up the income ladder.