The U.S. economic outlook hangs in large part on whether business leaders respond to the new coronavirus crisis as they have with many past shocks: by laying off masses of American workers.

So far they have largely avoided the tactic. But the pressure on companies to squeeze costs is building as consumers, governments and others pull back on activity. Purges of workers could become unavoidable in some industries such as shipping, air travel, retailing and dining as demand slows.

...