In the US at least, firing people for cause is difficult to do. More likely you just wait for next RIF and include your low-performers on the list.
So, yes, this is business as usual to some extent, but it's not a very cost effective or efficient way of hiring. If you really have work that needs doing, then you want to hire someone able to do it, not have a haphazard hiring process where it's a crapshoot and "if they don't work out we'll just fire them in our annual RIF, and try again".