You're right - the employees accept the bargain. GS and many other banks run a force or stack ranked grading system. Those at the bottom are shown the door when there's a round of cuts. I know from first hand that after several rounds of cuts the people at the bottom of the stack rank are strong performers because all the duffers are long gone. A lot of politics surrounds the ranking system, so the results can be brutal. It's a Faustian pact accepted by all the players in the hope of getting those juicy bonuses. And I have even mentioned the complete lack of work life balance.