I am not making it up. What you're talking about used to happen a lot more, but even then it wasn't that common. The small studios will often work on contract work if they didn't have a projects of their own, and large studios have multiple projects going at the same time. One of my friends just recently they canceled their project but luckily didn't lay them off and just switched them to a different ongoing project. Indie studios generally they wear many hats and everyone does pre-production, design, and other tasks.

It's too time consuming and expensive to train up all new staff every project. Maybe a handful get laid off, but it isn't gig work. It's unusual for that to happen.