I absolutely agree - and it seems to me that in battening down the hatches in preparation for tough times ahead, companies are creating a self-fulfilling situation... more and more people lose their jobs and have no income therefore consumer spending continues to decline - meaning fewer people buying the products and services these companies are producing! It's scary what a vicious cycle it could become.
Instead, companies should look at other methods of running leaner: ways to reduce their own waste, reduce energy consumption, and optimize their resources. They can save costs while also doing something socially responsible.

And on top of it, companies' most important assets are their employees. People are an extremely valuable asset as they are the ones making your products and services valuable.

Like any investment, you make money from people in good times, and you may lose money in bad times, but in the end, the investment in your people is a sound financial investment.

For example, my company has a network of freelancers. We're currently exploring ways of putting some of them on a part-time payroll in order to alleviate some of the financial stresses of this downturn. Is it the best fiscal policy? Maybe not, but they've taken care of us in the good times, and we hope to take care of them in the bad times... and in the end, we maintain quality standards with quality workers.