if the employees that were cut were working on a product that was losing money, then its more akin to liposuction. Its not about the employee's skills either, it's the business unit. If you start cutting database or network engineers on the AWS team, now we're talking about cutting off limbs.
Put another way, lots of startups are failing or are going to fail in this environment. Layoffs are like killing "internal startups" that aren't moneymakers.