At many of the best tech companies, the conventional wisdom has always been that there's a huge backlog of stuff to be done. They don't want to deliver 100% of their roadmap with 50% of their employees, they want to deliver 200% of their roadmap with 100% of their employees. (And the speedup is not as high as these numbers imply for many kinds of performance, security, or correctness-critical software.)
Some companies like Block, Oracle, and Atlassian have indeed been laying people off.