This is completely incorrect. Large companies like Canonical are all in on Flutter even now, they're making it the default for desktop UI development in Ubuntu and are writing a lot of their own apps in Flutter.
The "layoffs" were not any of the core team, it was just an offshoring, of infrastructure devs at Google that happened to work on Flutter builds, to Europe where they rehired for the same positions there.
Google Workspace has been moving to KMP. They said at KotlinConf that it has replaced their decade-old transpiler from Java to ObjC, which is very impressive.
Yes this is because they are starting with a Java codebase and that obviously makes sense there.
You have other platforms like Google earth who when it was time for a proper rewrite went with flutter and dart along with a bunch of Google cloud stuff and Google Ads.