[Animats]

>If supply and demand stay the same, then why do you think the price will change?

Fear. Much of this layoff activity is intended to induce fear. Employees were getting too uppity. Talking back to management. Doing side projects. Talking with each other about wages and working conditions. Even forming unions. That had to be stopped.

"A touch of the lash will keep them in line."

[cyberlurker]

I suspect this was not the main reason for the layoffs. But whether it was the intention or not, it definitely is a powerful psychological tool in negotiations during a time when many employees were demanding more and more.