I believe the question is around layoffs being beneficial or detrimental. For example, let’s say you have a 6 person company and layoffs affect 50% of the staff. Now you’re down to 3 people. Is that beneficial or detrimental? Now 3 people need to do the work for 6.
At a large scale, maybe some companies over hire, so it cuts the waste and the amortized results are better financially. However, for others (Twitter?, tbd) when you mass cut a ton of talent, innovation dwindles, morale sinks, time to learn and pick up old projects increases. Layoffs can hurt companies financially much harder, but it may not be immediate. It may be the demise of the company in 1-3 years due to all the other complex variables at play
At a large scale, maybe some companies over hire, so it cuts the waste and the amortized results are better financially. However, for others (Twitter?, tbd) when you mass cut a ton of talent, innovation dwindles, morale sinks, time to learn and pick up old projects increases. Layoffs can hurt companies financially much harder, but it may not be immediate. It may be the demise of the company in 1-3 years due to all the other complex variables at play