"Overhired" is not always the best way to describe "hired with intentions to do things while capital was cheap". I saw a bunch of startups and larger that really did intend to build things. When hard times hit, some shut down. Some cancelled any lofty project that wasn't already committing to their bottom line.

So the solution is, "never hire headcount to work on a project that might not be financially viable in a recession"? Help me see another solution here.

I think I agree with you. I was just poking fun at the above comment who was blaming “managers” for what I think is mostly monetary policy.

Because they seem to think that saving money offers more value to shareholders than creating additional value. I'm not sure they know how to offer new value.

The ideal size of any company is not infinite, especially in a tight labour market.