@ed
You know, I once worked for a company that had to let people go. It was during the 2008-2009 crisis. I wasn't affected. However, let me tell you how everyone was treated.
The CEO came to talk to our office (one of several offices). He explain the situation that we were in. He explained how he had no choice. 10% had to go (and received a company reference), the rest needed to agree to a temporary salary adjustment to weather the storm. Nobody was made feel bad, we were not bs-d, he even had a PowerPoint with the numbers, leadership wasn't going around touting an "amazing culture" or "everything's so great".
I would call that a much better way, don't you think?
I also agree with the person that replied to you earlier pointing at the stock (and overall company) performance. If you want to talk about "underperformers", sure, and ask yourself, what about those that actually manage this place?