Why do companies give bonuses yet lay off workers?

Companies may give bonuses while laying off workers to reward high-performing employees or to retain key talent, particularly in times of uncertainty. Bonuses can serve as an incentive to motivate remaining staff during difficult periods. Additionally, financial constraints may lead to layoffs despite overall profitability, as companies aim to streamline operations and reduce costs. This approach can create a complex dynamic between rewarding select employees and making broader workforce reductions.