Why layoffs don’t work
Yet companies keep using them over and over.
In 2001, after the 9/11 terrorist attack on the World Trade Center upended American travel, layoffs rippled through the airline industry.
By late September, ~81k jobs had been cut industry-wide. Nearly everyone made cuts, from bargain carriers like Frontier and Spirit to heavyweights like American, US Airways, and United, which each laid off between 15%-23% of their workers.
The lone holdout was Southwest Airlines.
It delayed purchases of new planes a...
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