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When a company is in serious financial trouble, layoffs might be a way of saving it, but outside of emergency, does anyone think that laying off larger parts of

• YZF 11y ago
  At the very least it means the company isn't able to grow. It also means it's a poorly managed business. A lot of the businesses laying people off aren't even in financial trouble. Some of them have piles of cash in the bank and are profitable. They just lost what it takes to enter new markets and grow their business. The sad thing is that the stock market will often reward this strategy because in the short term the cost goes down and the revenue decline lags. The good thing is that it's a healthy process that leads to new businesses being created that are better than the old ones.
• tryitnow 11y ago
  It depends. There's some business units that just don't make any sense to keep funding. They may have become uncompetitive, technology could have made their business model obsolete. There's a whole host of reasons why it would be smart to lay off a big part of the workforce. Mostly, it just comes down to getting a better return on invested capital elsewhere.