Now that the market is rallying on the news that major retailers are reporting profit declines that are less than expected or losses that are less than expected, we need not fear mediocrity for it is now being fully rewarded. It doesn't matter how well or how not so well a company is doing as long it beats expectations one way or the other.
The current formula of cutting people by any means necessary provides the reduction in costs a company needs to supply the market with "unexpected" numbers. Meanwhile we struggle to get service in any retail store now because they have the bare minimum of staff. Now it is just a constant stream of layoffs every month to bring the numbers in line. Obviously this is not a strategy for growth, but, for now, it is good enough for Wall Street.
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