both things can be true: many people play unnecessary telephone + removing those people disrupts the organization

Both are probably true to some extent, and would vary a lot between different orgs.

> removing those people disrupts the organization

Or worse, you removed the workers and left the 'telephone' people.

In my anecdotal experience, MOST companies don't take any time to understand what they are cutting.

They kill "Project X" so the easy answer is that everyone involved with Project X must go. Regardless if they were useful or could be useful elsewhere.

Or they cut by salary, employment length, etc.