Short version - Layoffs increase short term profits, then you let the business die to sell off the assets. This is generally considered a safer strategy than long term investing because it doesn’t require expertise and you get paid quicker (compared to buying a company and waiting 5+ years to turn a profit on the purchase).
Look up private equity and corporate raids.
Short version - Layoffs increase short term profits, then you let the business die to sell off the assets. This is generally considered a safer strategy than long term investing because it doesn’t require expertise and you get paid quicker (compared to buying a company and waiting 5+ years to turn a profit on the purchase).