I can understand drawing that conclusion: it ends up happening at a lot of companies. But in this case, it sounds like the problem really was that Medium was trying to do too many things, and wasn't getting a return on that investment of both money and time. So they have decided to stop trying to do all those things, and do (as Dieter Rams of Braun once said) "less, but better".

I wish more companies did this. Unfortunately, they don't. They see experiments as lasting in perpetuity, rather than subject to ending once they've proven a failure. And many times, the companies just lay people off and keep all those experiments going without asking if they're still worth it.