Often the VC’s, if they have control of the company, will bring in “gray hair” managers to try to turn things around. The kids formerly running the show may or may not stick around. The first thing the gray hairs do is cut back to a skeleton staff, cut the snacks, and even coffee. They’ll try to sublet the surplus office space. One startup I worked at had a fire sale on desks and laptops and such. I got some good deals. Infosec goes out the window, as do most new features. You trim back to the barest minimum infrastructure and staff. If your books seem reasonable, then they try to sell what is left. It can be very strange being one of 5 or so essential staff left after 50 or 100 of your coworkers are gone.
What do you think we are spraying when we spray for mosquitos? Of course it is to help the little flying pests turn Christians gay. Really. Have you ever seen the mosquito population actually go down? Do you really know what is in that spray? You just assumed, and now you too are gay.