Ultimately the only thing really regulating these labor markets are competitive forces. If all the competitors are cutting their labor costs, you have reduced r

Ultimately the only thing really regulating these labor markets are competitive forces. If all the competitors are cutting their labor costs, you have reduced risk of your labor jumping ship, less mobility, etc. and have opportunity to cut costs as well. You have an opportunity to reduce costs and increase profit and revenue at the same time. It may also be the case that this is an actual correction trend in the market to overhiring. Whether or not that's the case or the target is more of the former is ambiguous to any outsiders so this will be the explanation given because it puts things in a more positive light than the strategic "we have a golden opportunity to cut labor costs so let's do it."