Speak volumes for the character of the people who are managing the company. Lay off people who helped you get where you are the moment you feel you won't need them in the future.

What avenues have they exhausted before laying off workers?

For example my company during COVID chose to make a temporary 3% reduction to salaries rather than laying off the people. That was that year's minimum salary increase. Basically they took what they gave that year.

Many companies are very disloyal to their workers, vice versa.