I would argue CEOs generally find it optimal to "overgrow" during boom periods and "cut" during bust periods. This is why we see the routinely observe the pattern. It is not because a bunch of confused CEOs are constantly making mistakes. This was expected, even planned for (if not explicitly). This is how startups work. Overgrow, then cut, then overgrow again. Layoffs, especially around moonshots or non-revenue-generating teams, are only problematic for PR purposes.
It's true but it would be nice if they were honest about it. It makes sense as a strategy because, if the bust doesn't come (or as soon as you think), then you'd much rather be in the position of having grown to take advantage of it than not.
It seems to me they are moderately open about it. "We expected things to keep growing, acted on that, it didn't, now acting on that."
I suppose they could say "we thought the economy might contract in 2022 as it would eventually, but that risk was more palatable than not growing and missing out vs our competitors if the contraction didn't happen."
