When a company underperforms, they always cut payroll because it's the easiest thing to cut fast. But it always causes customer service issues and lost sales for months to come. Then they see even worse numbers and figure if they add hours to "improve service", sales will magically come back. Wrong. Once you lose a customer it is very hard to get them back and the word of mouth is so damaging that you sometimes never recover. The company doesn't employ enough people to try and win the customers back they keep losing.
Perfectly stated, @QycOY0n-hgo. It was proven over and over that layoffs do not work as a long term profits solution. They show up on the quarterly results once, before they are nullified by business lost caused by them. Rinse and repeat. Yet everybody stays focused on that one quarterly buff. Pure idiocy.