My job is diluting our stocks – what does this mean?

I am a young professional just starting out and I work on the non finance side of the company so I’m not too familiar with finance terms so bare with me. I work at a mid sized tech company based in the US and over the past year our stock has gone down by over 50% and just a couple weeks ago the c-suite released a statement that they would be diluting out stock in order to help ease inflation. I’m personally not sure how any of that works but according to my boss it was a good thing for those who got hired while our stocked peaked (this including me as I joined when our stock was worth around $400) but I’m not sure how this helps if it helps at all. Curious to have someone explain it to me. Is this a positive like they laid it out to be or a negative? Does this mean anything for the company? Would love to know.