Things were transferring from non digital to digital decades ahead of expected[1], so head counts had to be adjusted to where companies thought they would be 30 years from now.

The gamble was once people went digital only, they won't go back. The bet was wrong. People are back to their 2019 digital habits

Plus, with all the record breaking profits, there is pressure from shareholders to re-invest in the company (and create even bigger record breaking profits)

[1] https://www.bloomberg.com/news/features/2022-10-11/amazon-am...