After announcing that Larian Studios wouldn't be making Baldur's Gate 3 DLC, an expansion, or Baldur's Gate 4, director Swen Vincke revealed that Larian had actually begun work on planned downloadable content before ultimately deciding to cancel it because the team's heart wasn't in it.
Larian didn’t lay anyone off. Hasbro laid off WotC employees who were working on support for BG3. They have no power of Larian.