Well, sure. I think they were going with the wave of success and simply didn't stop. I've seen companies grow very self-indulgent because of their success many times over.

The fun bit is that in the USA, you can (almost everywhere) whimsically fire anyone without cause and without any transition pay. So what's to stop a company from just hiring a bunch of people while they're growing, and just kicking them out whenever?

I think they already realised it was out of proportions, but you look really (REALLY!) bad if you fire 1000+ people when business is going well.

You only look slightly less really bad if you do so with an implied reason that you then simply don't communicate to anyone.