Comment by marcosdumay 3 days ago
Layoffs in profitable companies are always counterproductive.
At best, it signals the company is done with growth and is going for a high-profit, low investment (including low innovation) policy.
If you are looking for freeing resources that you can redirect, firing your "resources" won't help redirecting them... unless you think you don't need the people that are working for a while at your company and can get better ones by hiring.
But if it's the second one, well, you'd be stupid and my best possible explanation up there doesn't apply anymore.
That's not always true. Layoffs can spur growth if you are dropping dead weight, for example by eliminating under performing business units, consolidating redundant functionality, or simply correcting previous bad decisions that led to over-hiring.