Why the layoffs if we're still profitable?

This is the most common question being asked among engineers and rather should be asking if you are not. EDN Executive Editor Ron Wilson Explores "We see giant companies like IBM and Microsoft announce great fourth-quarter and annual results, and then follow up with a layoff announcement." We see smaller companies in the fabless world staying on track on product development, successfully sampling to key customers, and ramping revenue products—doing everything right—suddenly making significant cutbacks, either laying off people or cutting back on projects that lead to layoffs elsewhere. And we see, if we look carefully, start-ups who are on track and meeting milestones just shutting their doors. What gives?" Read Ron's complete post on EDN to understand behind the scenes financial opera of a typical Industry Giant!