This. Working at EA punching out the next version of Madden, featuring roster updates, UI changes, and tinkering with a few settings isn't exactly work designing the new Unreal engine.
Your average Java CRUDster could probably do a lot of that work. Gamedev isn't the black art it used to be.
Sometimes layoffs are designed to give air cover for execs that want to get rid of "networks of detractors" who are causing problems, like how in a game company there might be a network of influential luddites who oppose use of LLMs over ideological reasons, even if the use case is good.
IMO those are virtuous layoffs, sometimes you need to clear your company culture of troublemakers who are getting in the way of company strategy.