Disclaimer, not an economist.

A coincidental combination of economical conditions happened before the layoffs, and I know correlation doesn't imply causation, but these conditions look like a big cause:

* Companies hired like crazy in Covid * Section 174 got disabled * Interest rates rose

This made money much more expensive, and employees became a much higher cost due to the fact you hired like crazy, so you have a ton more, and you can't amortize them, also combined with fears of recession in 2023.

In a very short term, this cocktail of conditions made operating a company much more expensive, thus the layoffs and reorgs as an attempt to cut costs.

What you are saying is also true, but I see that taking effect over a longer period of time.