I disagree. It's not about the culling, it has never been, and actually, it makes things worse. You spend countless hours and tons of money recruiting talented people not to lay them off because you don't want a bureaucratic org.

If the issue is inefficiency, tons of meetings, too much team alignment etc, then that's the issue that you need to tackle, and these issues can already appear in a 50-100 employee company. Sure, that's an easy problem to solve with a smaller size but unless you hired people for no reason, these people have a very specific set of problems to tackle and are often, in these companies, the best in class to tackle them, culling half of the company isn't going to make things better.

(And X rehired part of the laid-off engineers)

That depends who you are firing. There are many job roles who's primary output is meetings and documents.

What percentage of Google employees are engineers...