The article lists down why layoffs don't work, but companies keep doing it, so it must be working for them.
I hate layoffs (from both perspectives), but the article sounds like whining "we shouldn't break up".
The alternative of furlough only works if everyone else is doing it. If everyone else fires left right and center, the people being furloughed will still have low morale.
I think it's better to avoid it in the first place, by not over hiring, as others have pointed out.