This is where the CEO fukked up. Let's say they hired too fast and their cash flow didn't support they growth trajectory, it's the CEO fault and all the execs. If you're working 2 hours a day then that's on the company too have to plan better and fix. Perhaps the right training wasn't done or they just fukk up people planning. Knowing how these high growth companies operates, it's usually not planned out well for hiring and talent and hr. They just see the endless vc finding streams and think it's all good. Then the investors are pressuring the CEO for better numbers and then you get a rash decision like this. Happens all the time
Happened to me when I was in a tech startup. But at least the CEO was more humane