Companies are too cautious, too much in denial. The first cut is like a surgeon trainee making his first incision: too little, too late. Then comes the bigger cut, but its still not enough. Of course its not enough; by now the executives (who don't know what to do, who caused the mess and should be the first to go) have latched on to layoffs as the panacea to bring back the good times, the fruits of which they enjoyed but never understood. Layoffs can be necessary in a company, but they only work in conjunction with other actions, carefully managed together by leadership with vision and courage. I've watched executives argue over laying off a man that was costing them $5.00 per hour (and cleaning their bathrooms), but ignore everyone around the management meeting table.