Good question. Maybe they buried their heads in the sand until they went broke and had to fire everyone. Rather than make a tough decision earlier. Another the

Good question. Maybe they buried their heads in the sand until they went broke and had to fire everyone. Rather than make a tough decision earlier. Another theory if they cut staff they'd have to cut clients and therefore revenue would take a hit which would be bad for their image raising most more money. Might as well go "all in" hope to raise some more. If you go bust start another startup.