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There are a number of possible reasons for this.
Older people are less likely to change their attitudes and behavior styles and may be more difficult to adapt to a new corporate structure than younger people. Older people normally don't appreciate taking instructions from a manager who may be 20 years younger than they are.
Companies see less return on their investment particularly where training is required. For example, a company would rather pay 20,000 Dollars to train a young person who is probably going to stay with the company for 20 years than pay the same amount training an older person who may retire in 5 years.
Depending on the specific nature of the job, older people may be slower or less dexterous to perform a specific task (this is obviously a generalization, as many older people are fitter than their younger counterparts).
Older people are more likely to take time off work for injury and diseases than younger people.
The above is a very typical mentality in "western companies", in the East, Japan for example, older people are encouraged to stay and work as long as possible before retiring. The reason for this is that they value the accumulated experience such people have amassed over their working career.
It would be the same as taking an old experienced soldier and getting him to train new recruits rather than just pensioning him off because he is no longer active.
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