Stock prices typically rise after layoffs because the perception is that the company is cutting underperformers that don't have the same marginal contribution a

Stock prices typically rise after layoffs because the perception is that the company is cutting underperformers that don't have the same marginal contribution as the remaining staff. Generally, a declining stock price could have implications for debt covenants, compensation packages, and, requires selling more stock to finance the same level of capital expenditure.