[speby]

You answered your own question. Yes. Who removes a CEO? The Board. If the Board does their job (correctly), then they will make the right decision to release or retain the right CEO.

If the Board fails to do its job? What, then? Yep, shareholders have to intervene.

Which leads to what happens if the shareholders themselves don't figure out what to do or the right-decision to be made? Well, they lose a bunch of value as the company's value [eventually] plummets.

[yellow_postit]

The board likely signed off on the hiring plan. Layoffs are hard but as other commenters have pointed out are not inherently a sign the company is doing poorly. In many cases a board may choose to reward a ceo for identifying cuts and charting and executing a path forward.