There's nothing requiring that to be true. There are whole ranges of socialist ideologies based on removing the state, and so reducing or removing hierarchies, including pulverising large employers into smaller units.
There are others (with significant overlap) based around retaining market mechanisms, but externalising labour conditions and salary, and so using market mechanisms as a resource allocation mechanism. A market is only a threat to workers if there is a significant negative impact from being made redundant - some socialists believe society should strive for a system where we encourage businesses to make people redundant by making themselves more efficient; redundancy protections are a band aid for a lacking welfare system.
It's not for nothing that Marx and Proudhon violently agreed that one of the most radical policies you can pass is providing cheap credit (though they disagreed about agreeing...) - make credit cheap and you make exploitation of labour far harder because it becomes easier and lower risk to leave to work for yourself.
Sure, state socialist ideas ideologies would have the issue you describe, which is one of many reasons why a whole lot of socialists find them more objectionable than capitalism.
That is why seeing them loose the cloud war feels so good! Yeah, apparently there are developers outside of Google having opinions and making decisions!
