I've seen it done with young people in their mid-late 20s who are top-notch workers. I hear stories from these same people about how others their own age, maybe a bit younger, maybe a bit older, who want titles and salary raises just handed to them merely for showing up for work (never mind actual work performance). Companies have been bleeding out workers in their 50s and early 60s for the past two decades. Either the avenues for advancement are there, or they don't exist.
*by bleeding out, I mean laying off or “eliminating” jobs.