Correlation does not equal causation. Although unprofitable companies might be inclined layoff employees, it's not implied that layoffs are a sign of unprofitab

Correlation does not equal causation. Although unprofitable companies might be inclined layoff employees, it's not implied that layoffs are a sign of unprofitability (in fact, the opposite could be true: laying off employees whose marginal value is low could cause a company to be more profitable).