I do not want to comment directly, but the writing of Jeffrey Pfeffer, one of my favorite authors on management, may be of interest. From one of his books:
There is no solid evidence that using layoffs rather than less draconian methods to cut costs increases performance, and there is plenty of evidence that involuntary reductions in force damage both displaced workers and "survivors".This and some of Pfeffer's other work also talk about how to do layoffs effectively if they really must be done. To summarize, the layoffs should hit management harder than workers and should provide "people as much prediction, understanding, control, and compassion" as possible so you "reduce the number of people who feel afraid" and give people, "laid off or not", a "good idea of what steps they would need to take to control their destiny." ()
A University of Colorado study ... showed no link between downsizing and subsequent return on assets. A Bain study ... found that ... firms that used layoffs primarily for cost cutting suffered a drop in stock price ... A Right Associates study ... reported that layoffs were followed by lower employee morale and trust in management.
Pfeffer also refers to another book, Responsible Restructuring, for more "evidence on the ineffectiveness of most layoffs."