[chasely]

I read it more like "we hired when money was cheap and were hoping that we could create some new revenue streams but that didn't work out and now we don't have much hope of revenue growth in these areas so we have to reduce costs."

[kamikaz1k]

That is how it should be read, because this is how these companies operate. My company's CFO was talking about this as we pushed for profitability (since the market expectations changed) and rationale for investment was exactly like you said.

"It's our job to grow, profitably, so if we think we can generate more than what we spend, we can invest. But if its not working, we will cut it."

Unless you have a specific reason to believe it to be otherwise.