Unless I’m not seeing something, game production is expensive. Most studios are 1-2 bad games away from closing their doors. Games are expensive as hell to produce and as much as it sucks the “going public” option is sometimes the only way to go.
It’s easy to forget but most small (1-3 people) team indie devs probably aren’t even working a salary. They split the earnings from the game and either live off of that or reinvest it into their company but the moment salaries need to get paid, or office space needs to be used (not really necessary for small teams) that’s when expenses get insanely high. I’m not a business person but I can understand why you’d want to “trim the fat” (I don’t support it at all but to play devil’s advocate, I can see the logic despite the flaws). Growth means structure, and structure means expense.