Other developed countries handle this fine. If someone is shit, you put them on a performance improvement plan, a formal step that shows the company is trying everything they can to up your performance and that also provides notice to the employee that they aren't doing good enough. After a series of meetings over a period of time if the employee isn't improving and the company can show they tried to bring them up to scratch then the employee can be let go. If you need to drop staff due to being overstaffed there are processes for this as well.
This is far different than the current US situation, where you can lose your job today because your boss doesn't like your shoes.
Small instance, open signups, rapidly growing users. On balance, given the issues others are having, it's probably bots creating the accounts.
On my instance if you looked in the database they all had gmail emails and all had the same pattern to the email. We were adding 20 users a day, then suddenly had 100 new accounts in an hour. There was a lot of talk from other instance admins seeing the same thing.