It's part of the life cycle of many companies to hyper-hire when money flows in, and cut lots of jobs when they "re-adjust". I don't think this is good, I personally don't like it, but I learned not to be surprised anymore.
We like cloud because it scales in and out: often management don't see workforce differently.
In countries with functional labor laws, it's straight-up illegal unless you're basically going through bankruptcy. Mass firings should only happen if either 1) there's a very significant economic crisis going on, or 2) the company is doing so poorly its immediate future is uncertain.
The Silicon Valley style mass-hiring followed by mass-firing style of management is indicative of poor management. In a well-run company this should never happen, as the same could be achieved by simply reducing the hiring rate and letting natural attrition take care of the rest.
It is not poor management, it is simply a different tactic. Sometimes things work out, sometimes they don’t. The fact that Silicon Valley has succeeded in producing the most profitable companies in the last few decades seems to be relevant.
I can definitely agree with the "bet big" argument for startups - but Spotify isn't a startup and hasn't been one for years. It's a billion-dollar multinational!
There is of sorts, with high interest rates and inflation. This is shaking the foundations of how a lot of companies have operated since 2008.