Even if they are entirely employee owned, having thousands of staff working towards goals that you're no longer trying to meet or are unproductive is a bad idea. You need to employ & deploy your people in a productive capacity (however that is defined, it could be pure research, not profit motivated).
Big tech expanded a LOT during the pandemic. Too much.
Google hired 30,300 people in 2022! (and 21k in 2021)
While layoffs are tough for everyone (especially those losing the job), if you expanded too fast, I think that an early reset is probably better than burning through more cash to deal with a bigger problem later, when you then might have to make deeper employee cuts than if you'd acted sooner.
After these layoffs Google will still be a LOT bigger than it was a year ago.