No, it's "if you already have engineers that know your stack and customers and business then getting rid of them to save a bit of short term cash is stupid unless you're out of runway because of bad business decisions." That is a tangential point to hiring more engineers. You may slow down the rate or hiring however the ROI for getting rid of them in a growing startup is silly imho. A collapsing startup is a different beast.
There's exception and geniuses to every rule. In general however a simple solution will be much more difficult to argue a promotion around even if you make a ton of impact. You may get a top rating and a slightly larger bonus however not a promotion.
Every large company has a ladder for promotions that includes many words that basically come down to "complex." "Drive a year long initiative" or "multiple teams" or "large complex task with multiple components" are all examples I've seen.