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Wait a second, are you arguing that it’s better to just straight up fire people? In that case, the company is absorbing the lion’s share of the profits (or whatever profit is left) so you are effectively arguing in favor of shielding an entity over the livelihoods of the people who work within it.

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To butcher a famous poem, it's better to have hired and lost than never to have hired at all. Restrictions on letting go of enployees mean that companies are afraid to hire. They double check and triple check, they reject everyone they feel even the tiniest bit suspicious of, they try to protect themselves with ultra long probation periods, etc.

I don't know about the US, but I spent 4.5 months trying to get a new job here in the EU as a senior dev. Everyone tells me that was quick.

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