Layoffs are often viewed as a necessary evil for businesses facing financial challenges; however, research has shown they may be counterproductive in the long term. Studies indicate that companies that avoid layoffs, or implement minimal layoffs, tend to experience a rise in stock prices. For instance, during the early-2000s dotcom bust, S&P 500 companies without layoffs saw an average stock price increase of 9% in the following year. Conversely, companies that laid off more than 10% of their workforce suffered significant stock price drops. Furthermore, layoffs can jeopardize a company's talent pool, as they often lead to a loss of top performers due to decreased morale and psychological safety. The trend of frequent layoffs has shifted from a rare measure during recession to a quarterly practice aimed at managing earnings reports, suggesting that the underlying issues of over-hiring and financial management are not being addressed. Critics argue that the problem lies not in the layoffs themselves, but in the decisions that led to over-hiring and poor financial practices. Some commenters propose that instead of resorting to layoffs, companies should focus on better hiring practices and internal innovation to foster a healthier work environment, indicating a desire for a more sustainable and ethical approach to workforce management.