Companies that respond to a recession with aggressive layoffs have lower profits and sluggish stock returns for years afterward, says a study by a University of Colorado business professor. Wayne Mascio says compnaies that opt for strategic not across-the-board cuts are likely to emerge stronger from the recession. “You can’t shrink your way into prosperity,” he says.

Companies that respond to a recession with aggressive layoffs have lower profits and sluggish stock returns for years afterward, says a study by a University of Colorado business professor. Wayne Mascio says compnaies that opt for strategic not across-the-board cuts are likely to emerge stronger from the recession. “You can’t shrink your way into prosperity,” he says.