[Maultasche]

It's all about short-term savings, and a lot of investors think only short-term. The company will have more money because it won't have to pay all those people.

In the long term, this move will probably hurt the company unless all those workers were unskilled assembly line workers. When I hear such news, I seriously consider selling a stock, because that means the company is likely going to be steadily going downhill over the long term.

Sometimes a company in this situation gets it together and does well for itself again. In that case, it's worth buying the stock again. That's by no means certain, so in my opinion a buy and hold strategy isn't worth it for companies that are conducting layoffs due to financial difficulties.