And as companies improve their internal operations to take advantage of the technology they bought over the past two or three years, they'll be able to cut costs. That means more layoffs, but it also means stronger profits and a healthier economy. Indeed, the mood among consumers seems to be cautious but not desperate. I need to find another job in the next couple of weeks. Nevertheless, the steady drumbeat of layoff announcements coupled with dismal corporate earnings reports has created concern throughout the economy.
Layoffs are usually a sign of what has happened rather than a precursor of things to come.
But observers say one thing that's striking about the current downturn is how quickly companies have responded. That's a change from just a few months back, when companies poured money into hardware and software believing that was all they needed to do to keep earnings growing. The Big Three automakers focused on figuring out ways to sell direct to consumers online, putting Internet access in cars and launching a megamarketplace for buying and selling parts. It may be years before these initiatives pay off. AMR Research, Inc.