Based on the people I know who work at Confluent, the messaging at all hands meetings has been that the market conditions didn't affect staffing plans. Employees make decisions based on the expectation of ongoing employment - if the CEO keeps says "we won't do layoffs" and then you buy a house and get laid off, that seems like detrimental reliance.

It's also worth noting many places enshrine in law protections for layoffs because of the power imbalance between employees and employers.