If I had to make a guess as to why, given the fact that the people they laid off were all senior leaders and the numbers are good, it would be preparing for a pump and dump.
if you want to be able to pump and dump a really strong brand then you need to be able to have leaders who don’t mind burning the brands equity in order to make money. My guess is that specifically what intending to do here.
Change the leadership, make new “sticky” products, pump revenue numbers, then spin out a public offering of the magic brand that looks like a great new reboot and refresh.
However the brand is only there to smuggle in the subscription model around new products that have strong margin. Everyone* gets rich cause they slaughtered their fattest pig and yet another cultural staple is killed.
Don’t worry, another band of psychopaths will resurrect it in a few decades like Mattell is doing with the Barbie brand currently.
*Not everyone - very few actually