Treat employees with respect even if their about to be former employees
From personal experience I can say this is spot on. I've been laid off twice. The first time we had a couple weeks notice, they put us on 'casual status' which meant we could check with HR every so often and see if they needed anything and get some work. I didn't like it, but it didn't feel as bad as the second time after I spent weeks coming in early and going home late to get the project done only to get laid off immediately after the project was over, this time with no option of 'casual', losing my connection with the company. This sudden job loss felt much more like a betrayal, especially since I'd been working incredibly hard just prior to it. And I suppose jobs after this have a slightly more jaded version, more interested in making sure I have work-life balance over overtime, given what overtime has gotten me.
While giving workers notice of staff reductions can increase their anxiety about work, it can help prepare them for the possibility. Always layoff in person, seriously, it's a professional break up so text or email is not the way to go. make the person feel like YOU value them even if the company can't keep them on. Treat your employees with respect or all you will have when you're in a growth phase is disgruntled, un-trustful former employees to hire from.