You have a fixed asset (facility) and variable assets (employees). If you are trying to keep your failing company from hemorrhaging money, you can cut the liquid assets, because you have to keep lights on.

The situation at Barnes and Noble is dire. Anyone of us in the same position would have done the same thing, if you cannot admit this, then you need to look at financial sheets and what it takes to run a business.

Bearing this in mind, a similar action was undertaken by Home Depot where they cut their experienced staff loose to save monies, but were not in dire straits, I was on the same bandwagon as you about the move.