If they weren't able to hire these "better developers" in the first place what is going to change now?
Should someone laid off as a developer simply accept they can't cut it, leave the industry, and find a job as a barista where at least they can earn some tips?
You make a lot of assumptions about what devs are being laid off in the first place. And about the absolute quality of a developer.
One company's garbage developer is another company's 10x.