Well if the company goes out of business because its not making enough profit then all product launches will cease.

Saying that would be a much more reasonable layoff announcement. "Shit is good. But not that good. If we don't change course now, things may be less than good."

If that's what they actually believe, they could just say it.

They don't because optics are more important than honesty. Can't spook would be investors. Must control the market's narrative about the viability and growth-trajectory of your company at all times. It's tiring.