Instead of cutting their own pay, they punish their employees for the failings of their own business decisions. How wise is it to layoff the lower paid employees who actually produce the products your company makes? It seems incredibly counter-productive to me.
Taking responsibility is not fashionable in our society anymore. Look at all the consumers who run themselves deep into debt and then look for bailouts.
Well if they laid themselves off, who would run the company? And how do you know they did not already take a pay cut?