Do layoffs always boost stocks? – Bankrate.com 12-06-12

Salient to Investors:

In 2001, Bain and Co. found that from Aug. 16, 2000, to Aug. 15, 2001 companies that laid off 3 percent or less of their workforces rose 9 percent for the period versus 4 percent average increase for the S&P, versus flat for companies that laid off 3 to 10 percent of their employees, versus a plung of 38 percent for companies hat laid offmore than 10 percent.

Repeatedly laying off large swaths of workers is often symptomatic of flawed strategies that inevitably produce poor results.

Read the full article at http://www.bankrate.com/financing/investing/do-layoffs-always-boost-stocks/