As the research by this professor shows, layoffs are not a guaranteed way to profitability. Unless a company is in a dire financial situation (Twitter), layoffs

As the research by this professor shows, layoffs are not a guaranteed way to profitability. Unless a company is in a dire financial situation (Twitter), layoffs do not pay off long term. Lay-offs are expensive and tend to result in lower staff morale and, in addition to that, lower productivity. It generally increases staff turnover, especially if pay raises are also delayed. Good staff leaves typically first, as they have no problem finding another job. That leaves you with an overworked and demotivated staff base when the economic downturn turns into an upturn. Even if you manage to rehire staff quickly to deal with the upturn, you still need to train them before they start adding value.