A definite bias in the comments towards supporting academics.
My views, based on firsthand experience, are the opposite. Firstly universities are places where the fruitless, unproductive and unrealistic go to wallow in low-demand jobs. Most academics have little experience of the private sector and are not even aware of this concept of personal productivity (yes even in Economics departments!).
However universities ARE a massive and sometimes useful pyramid scheme where you take a bunch of students, incline them towards doing Phds, employ most of them, and hope that a handful of them earn your university some respect, and even that one or two may win a Nobel or and bring actual prestige. This is the real cycle of the university business - promote itself, buy in productive academics, publish more (not better) papers, grow funding, get more students, review rankings and repeat.
Good "science" (not an all encompassing term for the areas of research at universities) is as rare as good government.
A thorough de-weeding once in a while can only be a good thing, and a handy wake up call for those that remain. Good riddance. No one any good will be losing their jobs - not a one.