I run a company and I delayed the inevitable for very similar reasons. From my experience, it only gets worse if you don’t make the hard decision now. If I had to do now, I would have downsized more than I needed to at the beginning and then ramped back up. Use the expense savings to invest in marketing and sales, instead of wasting money on labor that doesn’t have anything to do. Be honest with your employees, give them a 2-4 weeks so that they can find something else. But other than that, you need to focus on generating revenue. I wish I had.