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the American system of employment is demonstrably broken; Mozilla in SF is bound by hundreds of contradictory and expensive rules for employment, originally designed to make safety and stability for workers, that are now spaghetti-code and are routinely worked around using international channels

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Is there any evidence anywhere that Mozilla's decline is caused by labor regulation?

probably not directly, no.. but the expense of employees and the pressures within management, I would expect, are a factor on why 250 responsible adults had jobs last week, but next week, they will not, in High-cost of Living SFBay Area

But they haven't said where the jobs are being eliminated and not all are coming out of the Bay ARea. The article mentions they are closing a center in Taipei. They also have a pretty distributed workforce with only part of it being in the Bay Area.

The US has a generally simple set of employment rules compared to the rest of the world. Most of which you outsource to some third party company and pay them a fixed fee per employee. The cost of employment comes from capitalistic competition for talent. Also, the fact that so many minimum wage workers exist in the US (at a minimum wage below most developed nations) is direct contradiction to your point. Employees are cheap in the US, engineers are expensive everywhere.

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