I have to assume that, in the same way that glass palace FANG offices and around the clock full-service employee pampering are doing something for (potential) employees, the idea of large scale firings will move the needle in the opposite direction. Clearly, it's not only about who pays most.
To give an example in microcosm, this news about layoffs is affecting my decision of what UI framework to use with .NET projects. .NET MAUI was already low on my list because I don't trust Microsoft to commit to supporting a UI framework long-term, but if any of these cuts are to the MAUI team then it will put it out of the running completely for me. I'm sure there are other devs in similar circumstances (and who likely rank MAUI much higher as a candidate than I do) who will weigh this layoff announcement into their decision. And there will be some who ignore it because they see it as a general symptom of the economy, not a sign of trouble at Microsoft etc.
Firing people at this scale would have been pretty expensive just a few month back, PR wise. Right now, a lot less so. So you might be tempted to think of the current climate as a good opportunity to shed some fat, to the point where you go into it with the idea of hiring back right away and being able to do so at better conditions. The market has relaxed.
Compare it to a few month back, where switching jobs (= firing your employer) was a great way to automagically increase your pay. It works both ways.