[davidw]

Math wise, yes, you're correct, but layoffs can also hurt morale, especially if not done well. And in a competitive environment, the most talented people might be next to leave after a layoff, as they see things aren't going well and have the easiest time finding alternatives. I've seen that happen myself.

And some of those people you're laying off did revenue generating activities, so, as above, yes, it may be necessary to reduce costs, but it has to be done carefully.