Judging from your reaction, it sounds like yall had a great work environment, and that this was a good way to handle the layoff for your team. It sounds like it went smoothly, which is 100%, A+, great.
But HOOO BOY, that was a HIGH RISK move by your boss. I sincerely can't imagine the clusterf** that would've resulted from that at some of the places I've worked. Good GOD. This is an invitation for a lawsuit on a silver platter, holy guacamole.