At this point there’s a ton of research on how large and long-lasting the negative impacts of layoffs are on company effectiveness (especially in the area of innovation). Eg: https://hbr.org/podcast/2023/12/the-hidden-costs-of-layoffs

It’s not surprising that CEOs are the last to learn of these impacts because they tend amongst the people at any big company who least understands how it works in my experience. And, like you can see here, once your CEO becomes just an agent of the short-term stock price you are doomed at doing anything other than enshittifying your product until the company eventually dies.