Please expand on this...

Thousands of HP Europe staff to feel Emperor Hurd's axe | The Register: "HP can ill-afford damaged morale at this juncture"

Why is this? Don't get me wrong, this may be true, and I certainly would prefer to see no job losses, but I do hate these unsubstantiated comments. Would it be better to damage morale at another time ? When? Or must morale never be damaged, no matter what?

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