They are a critical ingredient toward the success of the company, and everybody (including management) knows this.
HOWEVER, not every expat holds the same intention and dedication toward the company, and the comments here proves my point. All the laid off expats that I've heard of so far are well known to be UNproductive. Some cost double or triple what a Saudi would cost, and with the current market conditions, it only makes sense to start with them first.
I feel for those who've been cut loose, and I hope they're able to find a job and get back to business at the soonest.