It's a bit more than that with Kitfox involved, but I don't see why that makes him wrong. Greed kills a ton of creativity in games. Not just layoffs but over aggressive monetization and fear of innovation.
All the layoffs were inevitable with the extremely obvious bubble in any computer related jobs. Same as dotcom bubble with a bunch of superfluous hires for superfluous tasks and ridiculous budgets that were not going to pan out. So yes now we'll have tons of unemployed programmers and art departments from companies overhiring for at least a decade.