I think it depends on the company. I don't know how bad of a problem it is for big businesses like Amazon. Sure there's some lost profits and a write-down with the layoff, but it's not like Amazon hasn't been successful and profitable in the meantime. The overhiring may be justifiable as a defensive strategy.

I was at a smaller public company that overhired during COVID then struggled with profits (among other things). CEO and leadership lost a ton of money due to the share price drops from COVID peaks and CEO was ultimately pushed out.