I read long ago:
Firing someone is admitting to your second mistake.
(Not being able to exploit the talents of someone you hired. The first mistake is hiring someone who you later have to fire.)
Firing someone is admitting to your second mistake.
(Not being able to exploit the talents of someone you hired. The first mistake is hiring someone who you later have to fire.)
The ramifications of hiring are bigger. Sometimes a firing is because of the individuals lack of performance, but I think this quote is asking the hirer to be mindful of what outcomes (layoffs) come from mistakes of their decision making.
Otherwise, it is a reminder that it is a failure to hire someone that doesn't work out, and a failure to not be able to use someone as most people have some skills and firing someone is a very harsh thing to do both to the ex-employee in their ex co-workers.