People don't want to join companies that have recently had a layoff because they're generally interpreted as a sign that the company isn't doing well financially, outside of companies that advertise firing low performers as an aspect of their culture (Netflix). In an ordinary market, losing low performing business functions might make your company more efficient but it comes with outsized PR cost that makes it harder to hire.

A broader economic crisis offers good cover for such an action. If everyone is laying employees off, it's not as bad if you do it too.