Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.

Why is it that stock prices for a company seem to go up after a layoff?
If the market believes that the company is overstaffed, then management acknowledging the issue and resolving the problem can result in the price going up.  It can also mean that external events drove the price up, and the bad news was lost in the other issues of the day. Sometimes layoffs are a sign of the company entering a long downward spiral; in other cases it is a sign of the beginning recovery. The layoffs can also be viewed as good news if they weren't as big as some experts feared.  You have to look at the exact situation to understand why news x impacts the companies price.