Correction, the company was not performant enough to keep them working there…
The company has already had to revise down their earnings estimates a couple times this year, and hasn't bothered to replace about 20-30 other employees that have quit in the months since then (despite several of them being star employees).
That's why it felt like gaslighting to me, claiming these people weren't good employees and that's why "it wasn't a layoff" (even if that were true, it's still a layoff).