And the corollary of this is how to do layoffs right (allegedly Toyota does this):

1. Cut out whatever else you can first, like executive bonuses and salaries.

2. Calculate the bare minimum staff you need, through good times and bad times.

3. Lay off the rest.

4. Tell those that got stuck behind that it was an extraordinary event and that they have tenure for life should they want it.

5. Stick to your promise.