Companies that conduct these layoffs don't just lay off developers. The tend to also lay off support, sales, legal, etc... Especially support, a chatbot is all you need right?

And that's how that "layoff Discord" can produce something that can matter to customers. It will be a smaller company, and small companies have a serious advantage when it comes to support: you can get an actual human, maybe even the main dev, he can actually do things rather than transferring you from chatbot to bureaucracy. It doesn't scale, but it may be enough to get a competitor started.

As for connections, you may have inadvertently let go of the guy who has the connections. And you may have fired a perfectly functional team, ready for from clever entrepreneur with connections (who may be one of the fired) to pick up. It is so much of a recognized problem that some big companies hire people just so that their competitors can't have them.