> this is not true to begin with. classic engineering fallacy

Are you assuming they'd be put onto the existing projects (which may slow down delivery, yes) rather than doing new projects in parallel (which will not and will in fact let them deliver more because there are more projects)?

you're simply doubling down on the fallacy. doing more projects does not mean you're delivering more. code is not value. there needs to be clear demand for what is being produced and management needs to have effective leadership to make sure the right people are doing the right things. all of which require effort. in lieu of that, it's better to lay people off from the company's perspective. if and when they understand the scope of the problem and the demand is there they will hire more people. that's more or less how to economy works.