Also maybe it's true for OPs country, not in mine. It costs a lot of money to get rid of someone in my country. So that makes laying people off less profitable.
"it's profitable" hides a world of problem though. "it's profitable" over what timeline - just because an employee isn't doing something profitable this week, doesn't mean they won't be next week. It costs a lot to fire someone even in "at will" countries where you literally just tell them to F-Off