I don't get it. Company that is flush with that much cash couldn't find new roles for the 'small number' of people that were impacted? I'm thinking they used the good old "your position is being eliminated due to business reasons" excuse to get rid of people they didn't want to keep. It's a common HR tactic.
I hate to be that guy, but I want to point out that more people not always equate to more output. E.g. if you create a "controller" role, they would try to justify their existence and create more work/overhead for others. And you would be surprised how many roles in big bureaucracies are "controller" roles by nature.
In the third world, if you hire 100 people for a 5-man project, people end up doing nothing but their own things. It's bad but it's obvious that something is going wrong.
In the first world, if you hire 100 people for a 5-man project, people end up to invent and justify 100-man's job. Everyone's role would become their identity, everyone is busy and hardworking. The output is high, they would also have fancy analytics and reports.
It's hard for a person to believe a 100-man busy project actually only needs 5 men.