Each department has a cost reduction goal (e.g., 5%) given from the senior management. They aim at the least important projects, or those projects that are eating a lot of money. Manager then decide which to lay off according to some ranking list (e.g., if X is laid off, can the team survives? can we deliver our requirements?). Obviously, one team/department may be hit more than 5%. .. and No - being paid too much is not a reason, unless you are a consultant and your agent is taking a huge commission.
I thought this needed to be on top today, since the layoffs are continuing, for info. I read it here: @12rICSj7-gaz