Yes irrespective of whom The Management is, whether fifth columnist or loose cannon, he certainly knows how the Hong Kong Hongs treat recalcitrant staff.
They do (and we have seen CX do) all of the things that he mentions when they terminate staff. Their actions seem to be a combination of the vindictiveness of power, and an attempt to "encourage les autres."
It works in the short term, as any pirate captain will demonstrate. But in the long run you lose productivity, build a tarantula of resentment (thank you Nietsche) and ends up with the senior management being pursued by paid investigators to find that one mistake that gets you two years in Stanley for insider trading.
I am sure there are better ways of running a company.