> 2) That is sensible for the company. They have no idea how to use a 10x engineer, as can be detected by the fact that they're having layoffs. They don't know how to create value in the market and they're being forced into a position where they have to squeeze what they can out of what assets they have.

Okay, now explain why every company is encountering these issues where they're frequently laying off people and are unable to create value. The frequency of layoffs is diametrically opposed to your thesis because otherwise companies would behave in a way to reduce layoffs. Such as hiring fewer employees and encouraging longer term retention.

> If a company is having layoffs, that is the invisible hand of the market writing on the wall "THIS MANAGEMENT TEAM DOESN"T KNOW HOW TO MAKE MONEY AT THE MOMENT, STOP GIVING THEM IMPORTANT RESOURCES". That includes 10x engineers.

This is basically the Just World fallacy but applied to the free market. If something occurs then it's justified as a perfectly rational action of the invisible free hand of the market. In reality layoffs are rarely conducted by the people most equipped to do them, but via a mandate from heaven that you must cut your team for the sake of Number even if you're one of the most efficient teams in the company.