How Do We Decide to Go On?

In these cycles when things are bad, you see those layoffs. How do companies decide to do that? In my opinion, it's really culture, culture driven. So i've seen like teams that have a the projects that could have been are typically affected first. They may be, oh, we we hire too many people in up steam. How can we go lein there? Right? The next pocket should be some cost ho project.