Not necessarily. Layoffs do have a long-term impact on morale and productivity.

Layoffs only positively impact the business in the long run if the cuts are essential to the company's survival (otherwise, they would go bankrupt). Spotify likely had enough cash to weather the storm.

In can see the drop in moral in my team. We are busier than ever, as the work hasn't dried up, but there are no decent pay rises on the horizon. As soon as the economy recovers, most of my team will find job elsewhere.