What maximization of opportunities? Layoffs seem like a minimization of opportunities if anything else.

For workers, WFH gives immense flexibility and opportunity. You are no longer tethered to work in the same vicinity where you live. This gives you both personal (e.g. be close to family, be close to a beach, etc.) and professional (e.g. work for company in another city, on the other side of the country, etc.) opportunity.

Remember too that WFH opens one to increased competition from others who could do one's job who live in a much lower COL area

Right, so it is a tradeoff that a worker can choose to make: work for a company that doesn't have WFH/remote work or one that does. Each has their benefits and drawbacks.

PG has all the answers:

http://www.paulgraham.com/badeconomy.html

I see your argument that it can result in LONG TERM gains from which everyone will benefit but there are short term losers and the people on this sub are more than likely the short term losers from these layoffs.