Totally disagree with both sentences. As I posted elsewhere, I've seen layoffs in a place I've worked as a way to finally get rid of subpar performers.

I've also seen cases (and this appears more relevant in ARM's case) where the company just hired way too fast. It wasn't that people who were laid off were necessarily bad, but there were just way too many people for the amount of work, and so in absence of clear purpose a lot of people would have tons of "make work" meetings that were really there just so they didn't feel totally useless.

I'm certainly not saying all layoffs are like this, but I do take issue with the idea that layoffs never have a net positive effect on culture.