Laying off a significant portion of the workforce often reflects cost-cutting measures due to financial strain or strategic realignment. For a technology company like Enovix, which operates in the highly competitive and capital-intensive battery sector, such a move could raise concerns about its cash flow, profitability, and long-term viability. These factors are likely to influence investor sentiment negatively, at least in the short term, as the market assesses the implications of these layoffs on the company's future performance.