Another variable to consider: the 2020 - 2022 market was rewarding growth (as opposed to profitability or being cash-flow positive). The Corporate loan interest rate was practically 0%. Companies which could show growth, even at the expense of lighting cash on fire, were rewarded as far as the stock market is concerned. CEOs are expected to bias towards shareholder value, lest they be replaced by someone who will. And so, with these variables in play, many took the decision to rapidly expand their operations (costs) in any way that produced marginal growth. They lived and died by their ability to, on each quarterly earnings call, share the message of QoQ and YoY growth. For many companies this required rapid hiring.

The market now is demanding flesh and CEOs are either expected to provide it, or else get fired. Just like in the former time period, they would get fired had they not shown growth. I personally do not think a CEO should be fired now for having to hire employees, when they would have been fired in the first place had they not rapidly hired.