> What's wrong with firing people during other economic conditions? Layoffs have a huge psychological impact on the people who didn't get cut. If you do layoff

> What's wrong with firing people during other economic conditions? Layoffs have a huge psychological impact on the people who didn't get cut. If you do layoffs at a time when the economy is booming and jobs are easy to find, you risk losing your best performers who don't want to be at a company that fires friends of theirs. It's easier to fire people when jobs are scarce and people are already spooked and disinclined to try to switch jobs.