I know the story is if your utilization is too low, you get fired...but has anyone ever seen this happen to anyone? And if it did, was their utilization low because they were bad at their job?

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I have seen it happen, and it was both. Utilization was low because they were bad at their job.

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Bad at job or lazy. Low utilization is either can't or doesn't want to get staffed. Some exceptions apply, but either way not a good look.

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In bad years (for the firm), low util will get you axed. Also, for junior resources util is almost like SAT scores, a standard metric that is not taken on a stand alone basis but drives a lot of the candidate rankings

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Just happened here

Yes... Seen it

It's a valid reason for getting rid of shitheads

How does this even happen? The person just gets kicked off of each project they are on? Is it because they are incompetent or don't try?

It depends. 1st year analyst and weak pipeline; they know they can't blame you. But if you have a strong pipeline and everyone is staffed but you.... Think about it.

Also I know people with low utilization but they keep their jobs because they do tons of extra internal work for partners and such

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