Businesses should be more responsible in hiring not just for the good of the workers but for the company as well. Hiring 17% more than you should’ve means there was a ton of waste. Rather than seeing this as a sign of prudence like most investors might, I see this as a reflection of poor planning.
Literally no business works likes this. Every team and hire is a risk, and the market understands this. You don't have the information to say if there was "waste" and even if there was, so what?
But "poor planning" is inevitable in business. It cannot be completely avoided or accounted for. What should a business do that has planned poorly if it needs to cut costs?
Realistically they would have a permanent contract at a company that contracts out developers.
Flexibility (at the cost of a premium) for the client company, safe for the employee.