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I don't think this is going to be just cutting fat though. They're going to have their desperate and least-talented employees working in the office while their most talented employees will end up finding remote employment elsewhere. That's how RTO always goes.
Oh, 1000%. I could write a book on how monumentally stupid the whole process is (and most Amazonians agree), but the fundamental points are:
Most fundamentally of all...very few companies do this. It died with Jack Welch/GM and Gates/Microsoft, after they saw the same downfalls. Amazon is yet to learn their lesson, and it shows in how poorly the "Amazon Management School" under Bezos are performing. The other big tech companies also now do this, although less severe, and surprise surprise, they're all going downhill - making awful decisions, delivering nothing of value, and ignoring customers over leadership.