After 3 years, what group would you expect to perform better financially? And if we told you it was a tie, you might ask: what did group 2 to improve their situation? Layoffs? Ok, sounds like they worked.
None of the big tech companies are in a "dire" financial situation. Indeed, some of them have just announced modest revenue increases this week. Yet they still conducted big layoffs. Did they "need" to do it? (Note in contrast that Apple announced a significant revenue decrease yet didn't panic and do layoffs.)
Did they "need" to do it?
But then they also didn’t massively increase their headcount over the previous 3 years. Steady as she goes, as always.
It's kind of like me having plenty of money, right now, to afford Netflix but cancelling it anyway because I feel $14/mo or whatever the price is still too much for the value it delivers in the current year, and generally worried that I might need that $14 in a year (multiplied out across a bunch of other services or habits I engage in). I'd rather save my money now, as I've decided the situation is dire or could easily become dire. Am I actually cruel and obligated to keep my Netflix subscription (gotta make sure Netflix employees make a living) because I am not, at this moment, in what others perceive to be a "dire" situation?
What if you're wrong, though, and indeed what if many people are wrong in the same way, cancelling Netflix and passing up the opportunity of enjoyment to save a little money, but in the long run it makes no difference, and only hurts them in the short-term by depriving them of the enjoyment? That's the point of the article, that layoffs are empirically self-defeating.
It's not about a mythical "obligation" to employ someone. The cruelty comes from laying off people unnecessarily, when there's no benefit.
I would say that Apple is in the unique position of being particularly volatile since they rarely post losses. If they posted a decrease AND did layoffs, I'm sure some of their brightest would jump ship, and stocks would tumble further.
Plus they didn't really do a strong round of hire during the past few years.
In any case they’d still have lost two years of growth when their competitors were.
Companies do layoffs all the time, even when their financial situation isn't dire.