Do you think there should policy one way or another? It was policy that got them their visa workers in the first place, and that supposedly to fill jobs they could not with stock workforce. If there are layoffs, there are local workers.
What I think makes no difference when it comes to how companies decide whom to lay off. I doubt a policy preferring foreigners or citizens either way would look good in court should the employer get sued for unlawful termination or discrimination.