I wonder if they were just overzealous in hiring and don't actually need all those employees, but now can't let them go because of the impression that would giv

I wonder if they were just overzealous in hiring and don't actually need all those employees, but now can't let them go because of the impression that would give to the industry/equity holders. Large staff cuts usually do not instill confidence in investors, even if that staff literally isn't required.