This is nothing new. Google and Facebook are pretty much planned economies that have a lot of resources. There are no real existential competitive pressures, either externally or internally. This leads to politics (of all sorts) instead of economics or productivity driving employees. In some ways it parallels the resource curse of countries that develop their economy on a bunch of oil, which makes people rich but leads to lots of social and governance dysfunction.

Things like the Amazon "stack rank and then fire the worst performer on every team regularly, even if they actually are good enough" is one way to handle it, but that has its own obvious downsides. It does appear to simultaneously increase productivity and decrease overall employee happiness.

This is a problem inherent to all large organizations.