My company has a slightly seasonal demand. We use the dip to have a purge. We just have layoffs with no hope for return. It is much easier than trying to jump through all the beauracratic hoops.
What some people don’t understand is that the number of jobs is somewhat elastic with total compensation. Some jobs do not exist at higher wages. Take painting your house. At some point if the bids are too high you will either decide not to do it or do it yourself. On the other hand a low wage job can create demand. Think cutting grass. You may always cut your own. But It if someone offers to do it cheap enough you will find that there is some task more worth your time than grass cutting.