That's wrong. If everyone is doing something irrational that is a big inefficiency in the market and whoever does the opposite eg. hiring will get better outcomes as opposed doing it when all do.
Plus either way you're cutting expenses and maybe getting rid of some under performers.
Being wrong in a crowd means you have no thought process at all.
All the big companies doing layoffs are in the stagnation phase. "minimise disaster instead of maximising being the winner" is exactly that.