I expect it would be more common in suburban situations, which often have limits on how many chickens a person can have. If someone is allowed up to 6 hens, and it takes 6 good layers to provide all the eggs for their family, then they can choose to keep older hens and buy eggs, or they can choose to replace the hens and have enough eggs. "Removing" the hens can be killing them or selling them, but if you sell old hens there is a very good chance that someone else will kill them later, so the only real question is who kills them.
It could happen on a big farm. But most people with big farms are too practical to keep non-productive hens. I think the only way to end up shoulder to shoulder in unproductive old hens is to have a big farm and a source of enough money to keep feeding the hens after they quit laying. Otherwise, the farmer goes broke, sells the farm, and someone else kills the hens to get rid of them.
Personally, I view all chickens as meat. The main question is how long they live before I eat them (longest life for the hens who lay well and otherwise please me, shortest life for birds with quality-of-life issues, followed by any bird with behavior that causes a problem. Most males have pretty short lives if they belong to me, because more than a certain amount of males will cause problems by stressing and overmating the hens.) I would rather make chicken soup from old hens, instead of keeping the old hens and then buying chicken meat or raising broilers. But if I want tender fried chicken, the old hens just won't do it. Fried chicken requires young tender birds if you want to be able to eat it easily. Young cockerels can work pretty well for that.