It's one thing to say, you're struggling, but you think you can make it without layoffs. Or another thing to say your financial models say for the next 90 days you're okay at the moment. Or you're trying to shift money around, or trying to increase revenue, or to say you're looking for funding...
If people invest their lives in your company (relocating, working overtime, etc), they deserve the honest truth about what's happening. Particularly in a world where there's a high demand for tech workers.