Also is it a bad thing if it is happening? Will it slow progress or is it giving the rest on the industry an opportunity to catch its collective breath if the hype train slows down?
Firefox's servo research project team was laid off in 2020, and the servo project was branched completely into its own thing. The servo project is still up and kicking with plans for 2023 though.
The layoffs will certainly have an impact, but hopefully nothing substantial
I just learned about Servo and Fuchsia, and they look interesting.
Edit: https://www.linuxfoundation.org/projects https://summerofcode.withgoogle.com/archive