Paper losses do influence public co's layoff plans. It wipes out profits, paper off the books, reduces the companies "Net Worth", if the company is Leveraged, it will effect their lending options.
There is a direct correlation between stock prices and growth with in their 'Hiring".
The bottom line for public companies, is their 'accounting'. If they can add more value to their "Books", after they loose value due to stock plunge, they lighten the load of expenses. First to go, the workers. Thus, pushing up the EPS.
Private Industry does not work that way. They will keep their employees for as long as they can, cut back on other areas. Private Industry does not answer to "Shareholders".
Public Co. is owned by the "Public" that invest in it. EPS are their only concern. And workers at such companies need to understand that they are nothing but a tool, a means to the end and they are easly disgarded.
