> I've suspected for a while that companies with long, drawn-out hiring processes are using the delay to see if someone better (for some definition of "better") will come along.

In a way, yes. Hiring isn’t a game of finding the first person who walks through the door who passes an arbitrary bar. It takes some time to collect candidates, interview multiple people, and choose which one to hire.

However, that process should stop after the offer letter is extended. A company that rescinds offers as part of their normal hiring process would be very unusual. I suspect in this case the companies’ explanations (financial situation changed) is honest.

I always try to get candidates through the interview process as fast as possible, but recently it’s usually the candidates who are extending the process out. A lot of people like the idea of shopping around at different companies with your offer letter in hand, which can take weeks or months if you let them. At some point we have to thank the candidate for their time and inform them that we’re moving on to other candidates, because we need to hire someone.