If 20 employees are ~28% then Gitpod has must have had only around 70 people staff.

That is very different to the FAANG layoffs, where big tech has tens of thousands of employees where we know that a lot of those jobs were probably some BS jobs with little real impact on the company.

If you're a small business with 70 people then it's probably fair to assume that every single person had more work on their plate than time on their hands and there is also probably a lot of internal knowledge going lost now.

I think Google, Microsoft, Spotify, etc. are just laying off because they use it as a good opportunity to get rid of some nasty pandemic fat, but the Gitpod layoffs are probably more indicative of real financial struggles and viability.