[thebitguru]

I don't know about CircleCI specifically, but generally, pre-IPO companies are pushed to reinvest profits in favor of aggressive/continued growth, instead of profit. Most companies intentionally overspend, but now that the investments are drying out, they are changing their posture. So, I would guess it's the former, i.e., letting people go to reduce the risk of running out of money.

At the same time, depending on how the business is doing, some investors might look for exits too instead of plateau or later raising another round. So, it could be both.