It doesn't mean that they're doing terrible as a going concern, but it does mean that they're a terrible company to work for.

If you're hiring in bulk to tie up talent your competitors might want during a boom, and then promptly firing thousands in the bust, you're bad people and should feel bad.

But then, to paraphrase Upton Sinclair, it is difficult to get an executive to understand the impacts of their decision when their compensation package depends upon them not understanding it.