Critical is mostly subjective to whom you ask. In one way everyone is critical, in another no-one is critical (Except E.g. Ive or Jobs).

That said, I would think they are axing critical people. Then struggle and either fix it or go under. Whenever I was involved in layoffs, critical people have been laid off (from my perspective).

As a manager I was forced to lay off critical people before M&A. Because they we're critical positions I did rehire the positions after acquisition.