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Yes, to my knowledge, there is no longer an FCC requirement for a chief engineer to have a First Class license.
As for canning individual stations' chief engineers, corporate radio has been doing that for some time now. About ten years ago, back East, I knew a radio engineer I used to work with who was at that point the Chief for all of Clear Channel's stations between Maine and the Carolinas, something on the order of 80-100 stations. He told me he was on the road all the time, shuttling among the stations up and down the coast.
The FCC has been systematically gutting any obligation on the part of TV and radio stations to operate in the "public interest, convenience and necessity" as the rules used to say. If it involves spending money, well, it just has to be chopped out of the budget.