I agree with both the gist of the article and your comment.

In the case of the well known FAANG and other similarly structured large software companies, everyone working there or having approached them know how bloated and inefficient they are.

What is happening is likely a long-term plan to completely restructure themselves, progressively shedding headcount while using it as a disciplinary tactic.

I am sure they understand the cost and the effect on morale.

But they are foreseeing radical changes and they want to be ready and slim before the storm.