Just a note, that ABNB did a huge layoff at the start of the pandemic which allowed them to come out the other side a much stronger company. Actually highlights your point.
Both. When money is free flowing it's easy to avoid hard decisions (in business money hides many mistakes). Companies may continue to fund projects that should be cut or hire instead of optimizing a process. Prioritization alignment meetings end with everything is a priority.
In ABNBs case, business going to almost zero overnight was a forcing function to a level not often seen. After being forced to lean up and prioritize, they were well positioned for the market to improve.