It has nothing to do with being on the edge of bankruptcy or ability to obtain capital. For big tech and medium tech, it has everything to do with profit margin

It has nothing to do with being on the edge of bankruptcy or ability to obtain capital. For big tech and medium tech, it has everything to do with profit margins. If your revenue is expected to shrink, your profit margin will likely shrink as well unless you lay off some workers. For startups, it's about survival because their growth models are no longer valid under expected economic conditions and harder to get VC funding.