When you cut your staff expenses, you reduce your market!
If you remove the human element from business in favor of profits, you are reducing your potential marketplace.
Every person who is "let go" or " down sized" from a business in order to meet a profit expectation is a person who no longer has the ability to be/become a customer. This projects across the supply chain and therefore no business is isolated from the potential impact.
For example, a clerk is let go from a factory that makes widgets. These high quality widgets are used by several companies to make thingamabobs which are use in whatdoyoumacallits. Since the clerk no longer has an income, they can't buy whatdoyoumacallit and therefore the demand for thingamabobs goes down. This means lower production and profit for the companies that makes the thingamabobs which then means less of your widgets are needed and you have just impacted your own bottom line.
A simplified example for sure; however, the base concept of connectivity implies nothing is isolated. Think about the real impact the next time you are looking to cut your future customers to save this years profit line.