Last Updated Apr 12, 2007 2:42 PM EDT
"Research has shown that if a company announces a downsizing without a broader reference to a strategic plan, its stock price will, on average, drop 5% to 6% over the next several days, according to [Michael Useem, a management professor at Wharton.] By contrast, if large-scale job cuts are announced as part of a broader restructuring, and a strategic plan is laid out, the firm's stock will rise some 4%, on average, in the days following the announcement. Useem says the research shows that, contrary to popular wisdom, Wall Street does not always welcome job cuts for their own sake."So far Vonage has come up short in articulating what its strategy will be from here on out. But it might now matter; it has already reached a point where probably only a miracle can save it.