Why? Dont they have enough cash to easily last them the recession? Shouldn’t they instead start hiring more to get more talent than other companies? It would also allow them to pay people less than usual because people who’ve been layed off are desperate.
I’m talking about companies like amazon, meta, google, etc
Also, managers do not always want expansion as a strategy (like hiring even at low wages). it is a cycle: you expand, then you may need to contract to make things more "efficient". (It is psychological)
In either cases, guess what?: less employees is always the first solution that comes to their mind...
big !== smart
Group think / riot mentality is real in all humans. Business success and positions of power don't make you immune to being human.
Finally, some of the layoffs are due to adjustments in directions and priorities. No need to tell the shareholders you've had failing ideas on the books. Instead just cut them all lose, just like your peer companies and no one will ask any questions.