If these middle managers who want "stacks of people to organise and watch over" had any real power, they would have flexed their muscles to prevent layoffs in the first place. When it comes time to trim the fat, executive management isn't going to take any backtalk from mere middle managers trying to build empires.
High level management at FAANGs (aside from cost centers) are rewarded for their organization being profitable or on a quick trajectory to becoming profitable, not the size of their empire, mate. They will mercilessly cut headcount without losing a second of sleep to stay on the right side of profitability, particularly when times are tough.