To be clear, I'm not defeneding this pratice but explaining it. This cycle is how large businesses operate to foster growth over time.

• Lay off people to tell stock holders they are becoming more efficient.
• wait
• Hiring spree, announce new features, new directions, hype hype hype
• wait
• Lay offs! Trimming overhead! Streamlining! Much efficency! Good business!
• wait
• Hyyyyyyype! Discord announces a plan to replace iMessage, Email and the entire concept of texting! Triples their staff! Such hype!

Rinse, repeat

It's horrific for the employees and a scathing indictment as capitalism as a whole. But, this is how large businesses work, not nessecarily a massive corporate slip up.

Here is a lawyer explaining the "dance steps" that the game industries is doing as of late.