Layoffs are extremely expensive. At a minimum productivity is set back by a quarter, worst case you lose a year in productivity difference because teams are dealing with the fallout. Next comes the hit in morale and loyalty, those are very difficult to regain once it’s lost, you can write off all the team building and morale boosting activities for the next year, they will make very little difference.
Management has it wrong, the greatest asset is not the brand, it’s the people. Without the people building a great product, it doesn’t matter how much you spend on marketing, the brand and the business will suffer. Google focused on talent and technology, spending nothing on marketing and people flocked to its service. Layoffs are extremely short-sighted and very expensive. When layoffs become a frequent activity, you’re no longer building a great company, instead management becomes focused on how to manage cost and disassemble a company.