Companies continue to resort to mass layoffs despite the damaging consequences, as exemplified by Southwest Airlines’ refusal to lay off any employees after 9/11. This shift towards layoffs began in the 1980s with influential figures like Jack Welch and Al Dunlap, who prioritized cost-cutting for short-term profits. However, research indicates that layoffs lead to negative long-term impacts on both the company and affected employees. While some recent tech layoffs have yielded positive stock reactions, layoffs are often symptomatic of larger business issues and may result in increased bankruptcy risks. Experts recommend alternatives to layoffs, such as reducing hours or initiating furloughs, as a more sustainable strategy.
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