They need pilots and cabin crew as a function of their business, so if they are short of them they will continue to recruit. I have seen many companies in the past, recruiting while going out of business so it means nothing.
I am not saying cityflyer are going out of business, just drawing a comparison. As I have said in previous posts, BA kept the RJ fleet on when the rest went to flybe, because of the expensive leases. These are now nearing their end, making further Flybe integration the most probable future.
IMHO