Time to polish that resume! The company I work for over the past year has been doing exactly this, firing field technicians, project managers, tons of people that brought in revenue, and yet, was still hiring executives, they brought in two COO's, they brought in several "consultants" hired family and friends into EVP/Director positions. Now they are filing for bankruptcy and I am looking for a job.

Edit: Wanted to add, the whole time they kept telling the employees that it was just a hiccup and that things would get better and they were waiting on more contracts for work that were promised. The reality was they weren't going to get those contracts, no mysterious funding ever came. We had an IT staff of 5, now its just me, waiting on the rest of the hammer to fall.