This is true even for rolling layoffs that are purely financial. Better to rip the bandaid off than go through round after round of layoffs. Nobody feels safe and everyone is looking for a life raft.
Some of the worst morale I've ever seen is in companies after they've gone through multiple layoff rounds. And it's a bitter thing: survivors are hard-working, political, and very cagey; the kind of place where everybody is friendly and out to help everybody -- but not really. In reality nothing is going to get between them and their personal goal. And it's very rare that everybody's personal goals line up.
