I don't know what the policy is explicitly or if it's justified, but there should be visibility into that kind of decision making from the outside. It's in the lack of visibility that we see bad shit happen with hiring and firing.
Imagine you are an engineering manager running a team of 10. You got an email from your boss that the project revenue is way lower than projected, so the funding is getting cut and you need to get rid of one of your worst performers, but you have to pick who it is yourself, as your boss probably doesn't even know the actual people on your team. You have to fire them, even though you personally don't want to, because they are performing fine, just worse than all your other engineers.
Whose fault is this? Is it your boss' fault? They don't even pick the person and neither do they know any of them. Is it your fault? You've made the decision to fire that person, even though you don't want to fire them.