How downsizing is handled says a lot about the nature of an organization and its leadership. Ethical downsizing is, first of all, a refusal to deny the complexity of the issues and evidence of the organization's commitment to justice and human dignity.
Treating working people with contempt is a bad business strategy, plain and simple. Those laid off said it was more how the situation was handled that left people feeling betrayed and insulted. People wished their companies hadn't waited until the last second to announce the layoffs and had demonstrated more compassion.