Earlier quoted context omitted.
Don't forget the next bit, "by the third year, these differences became statistically nonsignificant". So the layoffs... worked?
> So the layoffs... worked? How does that follow? The conclusion would be that both the companies and workers suffered unnecessarily for 2 years, with no long-term benefit afterward to the layoffs. In other words, you should just ride out the downtimes instead of panicking.
Companies layoff when they're in some sort of trouble. If you don't have the cash to support the staff, you can't will that into existence.
So it follows that companies that laid people off struggled for a bit. Because they were already struggling. It's not an instant cure, or even a guaranteed one. It's a measure to spend less so you can ride out the downtimes.
Another way of stating it is that "People who were sick with the flu seemed to tire more easily in the days that followed compared to people who weren't sick at all". It's to be expected.