I think it boils down to leadership is really about managing relationships. This method is just too impersonal for most people, just like breaking off a romantic relationship via text is generally considered weak and frowned upon.
I believe a good approach would be to have those first line leaders (who actually have that relationship built with their subordinates) break the bad news and then the CEO speak to everybody and own the decision.
Surely after seeing your relationship status change on Facebook, they would understand?