Layoff of key members - Software Engineer JIFFY.ai Employee Review

Layoffs are happening everywhere but following a very bad strategy of laying off entire great performing product team and some key members in development who constantly rised issues, seems very political. Engineering team is more interested in redesigning or rearchitecting every now and then. What would product team and rest of the developers do in this time? They keep waiting after they fix 4 bugs per week to send weekly status report. Very bad strategy