To drive down wages. All tech companies firing thousands of people at the same time is a simple way to do this. Hire back in a year at much reduced salaries and benefits.
I cynically suspect this to be the case. As soon as one does it; the others have to follow to have any hope of controlling the tech salary bubble. They Don have to collude, just watch and match percentages.
> Why would any company fire anybody if they are generating money for them?
Amazon has been cutting teams that either could not justify their existence or worked in money-losing investments. Alexa was a very public project getting the axe.
There is an open window for tech companies to free-ride layoffs at the moment, that's what's happening. And they are taking this opportunity to its fullest.