Seems like a purge - new management comes in, and purges anyone not loyal to it. standard playbook. Happens in every org. Instead of euphemisms like "load-bearing" they could have straight out called it eliminating the old-guard.

Also, why go thru a layoff and then reassign staff to other roles. Is it to first disgrace, and then offer straws to grasp at. This reflects their culture, and sends a clear warning to those joining.