I'm British, so I appreciate that there's a difference in approach across the pond, but I still think this is a shitty thing to do. They are still growing (and setting records it would seem).
Just hold on to the staff and swallow the small dent in opex.
Not how it works from a financial analysis point of view. When interest rates rise money further down the line is rapidly devalued and cash flows in the near future are reprioritized. And firing people today and taking small layoff costs is much more accretive to the bottom line than growth down the line.
Also: Seems like the whole of VC is now on the FCF/Opex control train.
People own companies. Just like people own tvs, computers, phones. Do you ever go to someone and say "hey, are you using your phone in the way that's best for humanity?"
Just hold on to the staff and swallow the small dent in opex.