This is how fake news is propagated as fact. Rumour suddenly becomes source. Come dude, you are smarter than that. WTF
Reduction in head count is due to the 2022 regulations which separate operational costs from Driver wages. There is no conflict here.
The real issue here is whether the Mercedes F1 team can afford Hamilton. If they can't he would walk without regrets. Hamilton's value is not overvalued, it is what it is. If you want the best, then you have to pay for it. That is why some drive Toyota Prius and others drive Porsches. You pay for what you get. You could argue that Porsches are over valued. That is your personal view. Those that buy Porsches think differently. It is simply a matter of perspective. You are obviously a Prius kind of guy.
Besides, Hamilton would ask for what he thinks he is worth. It is up to him to state his worth.