You don't have to "lay off" to shrink the workforce though. 100s (1000s) of people naturally quit Google every month. You can just extend a freeze until you hit your employee target, unless you are in a rush (like need 30% reduction NOW).
> nobody hires you're basically stuck where you are and grateful to have a job
Well that’s true. It’s also possible to live below your means with a fat emergency fund and just not worry about that at all.