All the big FAANG companies that did major layoffs have rehired to the original amount since then.
I really believe the layoffs were not about needing less people, it was about gaining some ground in the employee/employer dynamic.
From a pure economics perspective, this is healthy for the business.
There are always low performers. Periodically transitioning out the bottom 10% or so, and rehiring different people, possibly in a different departmental distribution, is always net beneficial to the company.
Using regional/national/global events as the explanation is always better than blaming yourself.
Of course, it's impossible to segregate people into performance bins with perfect accuracy, and it's always bad for individual humans in the short term.
Arguments are made that it's good for society in the longer term, and wars are fought between opposing sides of that opinion. :)