If they layoffs are largely sales, I'll bet the cost of acquisition was getting out of control. I've found in practice it certainly can be hard to keep an eye on LTV (the long game), since sales teams live and die for month-over-month results. To support a people-heavy sales process, you need to have decent headroom in your margins, and they might not have had a lot of success getting people from the $25 to the $85 price point.