That seems like a good method of getting rid of all the really skilled folks, the skilled employees will have 90 days to find a job with better security, and will jump ship, leaving the deadbeats, that no one wants, that can not find anything else. This will be a wonderful thing to the managers with no clue, since anyone with a clue will leave and not be around to point out how clueless the remaining management is. at least the clueless managers will not have to find some other reason to get rid of the folks that know the difference*.
Management by the clueless, of the clueless.
I bet it improves profits for a while, until the customer's figure it out.

* everyone doing a passing job thinks they are doing a good job, until they ask someone that knows the difference between a good job and a passing job.