Correct me if I'm wrong, please, but since the equity is all options, doesn't that imply that they're making it easier for people to give them money?

Yes, sure, they have to dilute the company a bit by creating more stocks for the people buying it, but if your company is in enough trouble that you're laying off 1 in 6 employees, it seems financially wise to effectively be doing many small rounds of fundraising this way. It extends your runway some small amount.