I think maybe a little. His point is that doing multiple small layoffs to avoid pain and failure ended up causing more pain and failure. He's not saying he should have cut more than needed, he's saying he needed to cut more, because fundraising wasn't going to happen and getting profitable was the only way to survive. But presumably he didn't admit that until it was too late.

The 'right thing' in this case means something like 'face reality clearly, instead of clinging to fantasy because things are too painful or scary'. If you read to the end where he says "People are counting on you to do the right thing", he's telling founders not to shy away from difficult decisions because they're afraid of what outsiders might say. The point is that if you know deep down what needs doing, you're not helping anyone by avoiding it.