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Cramer: ‘Massive layoffs’ main theme in earnings

Earnings season thus far has been filled with stories of bountiful bottom-line numbers, with top-line revenues failing to impress. When earnings resume on Tuesday, Jim Cramer expects to see the earnings winning spree continue.

"It is worth pointing out though, they are winning in a pretty heartless way — through massive layoffs," the "Mad Money" host said.

Cramer pointed out that the stocks that are the strongest this earnings season are the same companies firing most aggressively.

The railroads have been among the strongest groups since quarterly earnings began. Norfolk Southern's revenues were down an astounding 6 percent and expenses shrank 13 percent, which produced an upside surprise on Wall Street. Yet, the average headcount for the quarter declined by about 1,900 positions.

CSX had the same formula for success, with a stock that jumped to $27 from $24, and a 13 percent reduction in headcount. That is nearly 4,500 fewer employees versus last year.

The second best performing group in earnings season were the banks. Bank of America's stock rose to $15 on Friday, up from $13. Cramer said it was no coincidence that it also cut costs...