You may be trying to think "rationally", but "stock market" are not rational. So, when "public companies" are underperforming (like now) they have to slash "visible" expanses to please "wall street".

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...