I don't understand this model. Such significant layoffs would indicate that there is no real appetite for expansion or growth.
Their goal might be be to acquire, dramatically cut costs, and then run the product for as long as they can at a profit before breaking it down and selling it off (or hope for a buyout by a bigger player.) But that wouldn't make sense — customers of a depreciating SaaS product surely churn after a 1-3 years, so they wouldn't make enough of a return from their existing customers to justify the investment...
My best guess is that a part of it is replacing US (or in this case Israeli) devs with much cheaper Italian/European ones, earning ~a quarter of their US counterparts and working longer hours, as Bending Spoons has an extremely competitive hiring process, and is probably the highest paying tech company in Italy
My sister and my parents basically ~only read newspapers from their apps, despite it being static text with some images.
I don't know how, but Google and Apple are really good at nudging people to use apps instead of websites.