Dealing with change...especially when it's abrupt and affects the people you know...is always difficult for all. I've experienced it myself (and now I'm a freelancer) and I've seen it done with and without dignity for the people involved. I hope some kind of severance package was offered to your coworkers to help ease their transition. If management didn't handle it well, it means a lot of lost productivity as the people who are left deal with the aftermath.

Best of luck to you.