Comment by im_down_w_otp

Laying off in good times means you were bad at hiring in the first place. Laying off in the bad times means the bad things weren't your fault. It's a very good way to not have to convey to the market, your investors, your supervisors, and/or yourself that you may not be very good at hiring while also giving yourself another go at it (hopefully with better results, though probably not, unfortunately).