[fendy3002]

Most of the time it happens because higher management don't find the lower staffs valuable, and seeing them as merely cost center and resources.

In their mind, it's easier to just lay them off, and rehire when the condition gets better. Input from lower staffs will be seen negative and obfuscating. They are lying to shift the blame to lower staffs and save face, it'll be useful when rehiring process come.

If they honestly said layoff to cut cost because of low budget, the news can spread and future new hires may be concerned with it. But if you said it's because the staffs performance and / or they don't need their specialization now, future new hires won't concerned much with it.