I had a great airline, was less than 6 months old and was turning profits of almost $20M a week.....then I went to the personnel office and noticed I had 50 too many of this group, 30 too many of that group, so I started firing extra employees, thinking this would be a good move to save a little money...........the very next day, my company image went from 72 down to 20, all of my employees were either at a zero or in the negatives, I lost half of my passengers suddenly, had to close down a base, lost half my fleet and even after I got the downturn to slow down and start to turn around, I'm now making about $2M a week instead of 20. Employee ratings never recovered, they're still in the single digits in some areas, my company image is back up but still only at 30, and thats after running a $4M/month ad campaign for 2 months.
DONT FIRE PEOPLE! It's much, much easier to just pay the extra couple million a month and keep those deadbeats employed. Even if you just want to trim down one department, you'll spend more in pay raises to get the morale back up than you did paying the extra employees...not to mention the image hit and everything else that goes along with it.