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Notes -
There was a massive bubble in 2020-21 with web3/NFT/crypto and all kinds of start-ups got insane valuations. So I think the sector is just trimming the fat. Not just within sectors (or entire sectors) but within companies too.
As for HR, my view is somewhat more cynical than yours. I think their primary function is to keep tabs on employees and keeping the company leadership in charge rather than helping to solve conflicts or other fluffy stories they tell others - and occasionally themselves.
My view is even more cynical- the primary function of HR is to reduce the workload for managers by offloading routine or non-decisionmaking tasks to functionaries. Your manager can personally keep track of your PTO, and document in the company's calendar times you'll be off, but in practice he'd rather approve your request and let a bureaucrat handle the rest.
Getting rid of HR is trimming the fat at the expense of making management work more. For a company in the red, this is fine to upper management because lower managers who have to take on HR responsibilities are all salaried anyways.
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