It's a little sickening to take your train of thought to its destination, which is that all of the developers being laid off right now are "bad developers" and will put other companies in a "worse position" if hired.
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.