There will likely be a decrease in the number of VC-backed startups and the amount of hiring that they are doing: if this occurs it will reduce demand. In a year where the S&P has dropped 44% YTD customers may value positive cash flow in a prospective vendor over additional engineering-driven features: perceived odds of survival may offer significant differentiation it didn't even six months ago. This represents a potentially very different competitive equilibrium, at least in B2B markets, than a few months ago. Also events like the Entellium fraud may make many firms much more nervous about doing business with startups and lead to the need for independent substantiation of the fact that they are cash flow positive. These efforts will have to come at the expense of other efforts (e.g. engineering, marketing, ...)
They've decreased demand only if they've reduced the number of products and/or reduced the amount of engineering required for those products.
Since they gave folks an incentive to leave near the end of a product, they've probably increased the amount of engineering for their products.