November 3 — During this US earnings season, multiple companies have disclosed layoff plans affecting thousands of employees to investors. As CEOs respond to the changes brought about by the rise of artificial intelligence, they are also seeking to cut costs. The market's reaction to layoff news depends on how investors interpret corporate adjustments: whether companies are proactively adapting to environmental changes or being forced into emergency responses due to threats. After PayPal and Microsoft announced layoff plans, their stock prices both rose slightly; Volvo Cars, however, said it would further expand layoffs due to a sharp contraction in demand in the Asian market, and its stock price fell sharply after the news was announced. Chris Armstrong, equity strategist at Berenberg Bank, said the stock price reaction largely depends on whether the market believes companies are proactively adjusting while operating well, or, like Volvo, being forced to act under enormous pressure. Data shows that the number of S&P 500 constituent companies announcing large-scale restructuring plans during this earnings season is expected to increase by about 20% year-over-year, while the number of related announcements in Europe is roughly flat compared with 12 months ago.