It just seems counterproductive, removing your workforce because you want to grow more
In: Economics
You are looking at it too broadly. If there are massive layoffs, it’s not something that is random. The least efficient, poorly performing people are let go. So when lay offs happen, two desirable outcomes prevail: reducing the costs of the business as well as shedding people who are below the performance threshold. It seems counterproductive but only in the short term. A business can replace people that are let go by cheaper or more potential talents, or adopt an outsourcing or technological equivalent.
In my experience, relatively speaking, layoffs are actually a good thing. Right after they happen it is when people get promoted and are given raises. So if you are indispensable layoffs are good, but if you are a regular joe, its bad news.
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