I cannot imagine the feeling of the employees either: those who were fired are the ones who walked away with money + take away everyone else's job.
I'm really conflicted about labour laws. On one hand, having gone through some (IMHO) very unfair treatment at a previous job I'd like those laws to have some effect. On the other hand, I don't think many current forms have unintended, serious consequences, which favour the wrong people/wrong outcomes... No wonder that I hear from entrepreneurs these days, that don't hire people until really really positively absolutely have to.