Having worked for a whole bunch of companies over the past few years, one thing is a constant in the tech industry: there is a limitless supply of candidates for any given job, all of which are bad. It is a huge, challenging problem to find the small number of people you want to hire. I'm not sold that "10x developers" really exist, but I know that "0x developers" are plentiful: these candidates aren't just a "poor fit", they are entirely unable to do the job they're applying for. I've seen far too many graduates who are entirely unable to solve the most basic screening questions, and just don't seem able to write code.
In a similar vein, it is entirely reasonable for a company to be simultaneously cutting jobs and hiring, if they are cutting persistent underperformers and trying to hire more promising replacements. (Some legal fiction is necessary to do this in the current regulatory environment)