Yes!

This is a key point, I think.  Instead of laying people off--unemployment benefit, sickness benefit, problems with families, in schools...etc...

Instead of that, just find the unproductive people and...give them new, more-productive tasks.  Always thinking in terms of projects: What is the aim?  Who do we need to do it?  What can we get those who we don't need for this project to do instead?

Maybe there'd be some slack in the system, but overall I think some slack is good...  Gives people a chance to regroup, retrain...  You have their support (because they're not being threatened with losing their jobs), and you have people in place for the...next task(s).

Don't fight forces, use them R. Buckminster Fuller.