See Netflix Culture: http://www.slideshare.net/reed2001/culture-1798664 http://www.slideshare.net/reed2001/culture-1798664 It's about doing the right thing. Bu

See Netflix Culture: http://www.slideshare.net/reed2001/culture-1798664 http://www.slideshare.net/reed2001/culture-1798664 It's about doing the right thing. But this article is not about slashing salaries instead of laying people off. It's about the bush league moves of forcing people out through salary reductions than lay offs. Another reason is a more technical one, mass lay offs are accounted for differently than slashing salaries. You can book the severance and associated costs with mass terminations as "restructuring" which hits your P&L as a below the (profit) line cost.