It appears now that DVC was created to prioritize Vertical team members and keep them close to the business operation, (light-ON strategy). Whereas treat Horizontal team members like consultants, increase or reduce team strengths on need basis. The cuts may be happening more in Horizontal team. Doesn't matter performance or tenure. Vertical team takes all the credits of getting things done as well:-(.
Vertical team is safe! The boss seems to be a visionary person now, by hampering full org. productivity with this structure he can grow in Q.