Human Resources - Does it pay to "let people go"?

Background:

There is a common saying in human resources, "it is cheaper to keep an existing employee and retrain them than it is to let that employee go and hire a new one." There are some companies that are known for their long standing lifetime employment practices. In these companies, retraining is fundamental and "human" capital is valued as much as other forms of capital.

Questions for Thought:

1. Have you ever worked at a job where layoffs were common?

2. Can you think of certain industries that are prone to layoffs or reductions in force?

3. Is the plan of action the consultants, the "Bobs", have for the company good for corporate strategy?