From the book Peopleware by Tom de Marco and Timothy Lister:
The object of the exercise is upsizing, not downsizing.
Companies that downsize are frankly admitting that their upper management has blown it.
Learning is limited by an organization’s ability to keep its people.
Successful organizations are always characterized by strong middle management and downsizing, when happens, is almost always targeted at middle management.
Think about it next time you read about a company announcing an employees cut and wonder why the stock markets award that (aka let’s think only about short terms).