“Even during bad economies, when layoffs are rampant and often more justified, the results are similar — and that’s according to Bain & Company, which, ironically, consults for firms that make cuts.”
After the dot-com bust, firms that cut more than 10% of staff fell 38% in stock price the next year. Firms that did not cut gained 9%. Companies with layoffs are twice as likely to go bankrupt. The consultants who sell layoffs published the data.