This has been the norm since Bass took over. When I was there 5 years ago we all knew there was a re-org every 12 a 18 months with layoffs becoming the norm. Prior to Bass taking the helm when we went through the dot com bust they executive team took a pay cut before asking employees to lose their bonus or raises much less there jobs.
After Carol for some reason brought Bass back after he nearly destroyed Redspark and then put him in a position of authority he began to create a toxic environment where people actively worked to sabotage their coworkers.
They have a nice benefits package but you need stability to count on it which you'll certainly never have there.