With all the recent layoffs going on, the thing with them is...You don't hire for work you have now, you hire for the work you expect to have a year from now. Onboarding and training takes time, so you don't want to be hiring people when you don't have the staff to train them because you're already swamped with work.
Lots of businesses went on post-COVID hiring sprees because they expected business to quickly grow back to pre-COVID levels and then continue to grow. At the time, this was a fairly sensible prediction to make. Unfortunately, that hasn't happened because of...well, *gestures at everything*. So most businesses now have more people than they have work for and no expectation that those people will be needed for work in the immediate-to-near future. Especially because many of those businesses took on debt to keep afloat through COVID, meaning they can't easily borrow again to try and power through this everything too.
Thus, layoffs.
EDIT: Funny thing is as was explained to me often the businesses owe the money...to themselves. If the owner loans the business the money it's still a debt, and the owner can't just write it off as 'all their money anyway' because that's basically tax fraud and suddenly the IRS get very interested in you. This is one of the many things that DT is being dragged around various courts for.