It is more like they want to fire and hire to show shareholders they want maintain status quo. Business don't really save money firing and hiring over and over.

It is more like they want to fire and hire to show shareholders they want maintain status quo. Business don't really save money firing and hiring over and over. It is the share holders who think nothing good is coming from employees who stick around or have earned too much annual increase in pay to keep them. If you make 180k a year and you get an annual bump of 4% pay every year, you'll get 7.2k bump. So 194, 202, 210, 220... in five years. It is a sizable bump. They fire rehire to sometimes reset those annual bumps.