I like the "no particular reason" concept you have. It's absolutely not true, but I still like it. The company over staffed because it was trendy to do so. The company was not profitable. Seems like a pretty good particular reason to me.

How it was handled can be discussed as being good/bad/fair/unfair/whatevs, but the numbers didn't like on revenue, just on the user counts.

You must have missed the many announcements of multiple thousands of layoffs happening at many big tech companies lately ;)