I don't really believe LJ either. The people they laid off were engineers, marketing & design. That's a very bad sign when it come to future, long-range business plans.

That they were laid off without severance packages definitely doesn't signal a company's financial health. You don't do that if your company is fine financially. Even when I was laid off by my first job (we were sold to another company and they didn't want to keep the employees, just the clients), I got a severance package.