For those who say "they will be better for it," try telling that to a 55-year-old who hasn't been in the job market for 20 years. You can tell yourself that if it makes you feel better, but it is not necessarily so.
Also, why doesn't management cut their bonuses as a way to save money? Keeping people employed means more dollars in the local economy. Executive bonuses mean more money in the Cayman Islands.