"But this is the way a meritocracy works. Expect that in the future we'll probably do similar types of things."
So basically, expect surprise layoffs in the future. What this CEO is succeeding in doing is creating a division in the corporation where most employees have little dedication to the success of the company, and probably resent it. That's not really the best paradigm for undergoing transformational change and continuing innovations in a market that is moving away from your core products.