A company can become more agile with layoffs if you have a bunch of useless middle managers who exist only to justify their existence and you lay them off.

I don't remember who but someone made a good example with the "this is fine" meme in Clair Obscur. Someone on the development team came up with the idea and it probably took a day or two to set up. So they took a day or two and it's in the game. Had the game been made by Ubisoft that meme would've never ended up in the game because the idea would've gone through 5 different managers who need to give their blessing (because none of them want to take the full responsibility in case it sucks), then it goes through legal to make sure there's no infringement, then through pr to make sure it's not somehow offensive. Eventually a week has passed and management is still deciding if it should be implemented. Finally it gets canned because the time spent on making the decision had already made it too costly to implement. Something that could've been done in a day took a week and nothing got done.

But I'd be surprised if that kind of downsizing is what Jagex had in mind.