It really isn't hard to grasp. All large orgs from government to private sector accumulate useless bloat over time if allowed to, since the goal of each employee is to grow their position and influence in the org at the expenses of the org, due to how the incentives for promotion are set up, kind of like a parasite .
And the easiest way to do that is to get the budget to hire a team to work under you, then you basically get an instant promotion to "leader/manager" and you offload your work to those below you while you chill "working" at home and take credit, and boom, the org somehow doubled its headcount overnight without any added productivity or innovation.
This gravy train was allowed to continue while there was an endless supply of free money to enable that added inefficiency, but now that the jig is up, the layoffs are a correction to that.