Honestly this is more on Erez and the board than anything.
The board, in short, approves the budget, strategy, and can fire the CEO. Keeping an underperforming executive around for that long is a bad look, and they failed in their responsibility to their shareholders in that regard. I cannot think of a single company that mismanages their capital, tanks their culture, pisses off their customers, and still has the same leadership. Even in a world where it's 'not his fault', companies change leadership to shake things up when they're not working.
Business is unpredictable and hindsight is 20/20, but there have been systemic problems at that company for a while now that led to these issues. Refusal to pay to attract and retain top talent, antiquated top-down leadership practices (vs. servant leadership/upside-down pyramid) which is the norm these days), half-assing investments that required all-in or not at all (esports), rule through fear, lack of professional development, a culture of "Well you're lucky you're working in gaming at all", and a tendency to always cut the corner.
HiRez is and always will be a place that people get their foot in the door to go on to bigger and better things elsewhere unless you're lucky enough to get one of the seats at the leadership table... and then you're still beholden to someone that doesn't have the level of expertise you do and has an opinion as if they do.
Ultimately this is the responsibility of the CEO-- even if he was constrained by the board, it's his obligation to advocate for more where needed to do his job effectively. Culture eats strategy for breakfast, and he fostered a terrible one.
Thankfully(ish) this latest move is not an uncommon one-- they're likely eliminating as much payroll as they can while Smite 2 is still going strong(ish) so they can prop up the financials and sell the IP off. The only bitch of it is that Stew will get paid out for it in the sale with all the equity he's amassed over the years, and everyone else loses their jobs.
Truly hope Epic buys out the IP. The game would be way better off with more investment dollars, resources, and better leadership.
Back into my cave!