Payroll is a cost, so it’s more relevant to think about a layoff in terms of its impact to profit (your example) than revenue. Lots of companies sell at a tight

Payroll is a cost, so it’s more relevant to think about a layoff in terms of its impact to profit (your example) than revenue. Lots of companies sell at a tight margin, so tiny cost savings as a percent of revenue can be a big difference in profit.