Yes they absolutely track keystrokes for productivity reports. They also monitor your company phone and emails. Teams can track your meetings and everything you do daily.
I can assure you nobody gives a sh-t about what you do on your phone or email. Teams are selected for layoffs based on titles, salaries, performance (ratings), number of total sustainment hours, and most recently RTO compliance. There's really no other metrics because executives can't be bothered to review individual cases.
You can be busting your a-s enhancing things left and right, but as long as you're putting in sustainment hours, you're sustaining.
If a team is chosen based on these qualifications, HR asks the manager to select a few people. The manager will then be left with the difficult choice of picking someone to let go. You can imagine how stressful this is becoming now that teams are running skeleton crews.
The company is also in a state of perpetual layoffs. We no longer have mass layoffs, but rather a handful of teams are selected every week. It helps keeps the overall noise down on places like here and in the media.
I'm sure HR will be upset with me ripping the covers off like this, but honestly y'all (and I know you read these) can go fu-k yourselves and your stealth layoff bullsh-t. People deserve to know how they are selected.