Businesses should be more responsible in hiring not just for the good of the workers but for the company as well. Hiring 17% more than you should’ve means there was a ton of waste. Rather than seeing this as a sign of prudence like most investors might, I see this as a reflection of poor planning.
But "poor planning" is inevitable in business. It cannot be completely avoided or accounted for. What should a business do that has planned poorly if it needs to cut costs?
Literally no business works likes this. Every team and hire is a risk, and the market understands this. You don't have the information to say if there was "waste" and even if there was, so what?
Realistically they would have a permanent contract at a company that contracts out developers.
Flexibility (at the cost of a premium) for the client company, safe for the employee.