Somewhat agree, but majority of jobs are really crap and when you get paid to barely live I can understand the whine. If it's constant complaining, then yes even if you aren't trying to pad upper management's salary then it is a great idea, no matter if it is a long time friend or not.
On paper firing the bottom 25% is common sense, but if your whole company is working great but you just want to ensure the higher-ups get paid more it is extremely scummy. (although pretty common since money means everything to such people)
In spite of all of this, you have several business that outright refuse to promote people to force turn over, otherwise they get to keep long term employees working for dirt.