We lost many good men and women in the redundancy rounds of the 90s and 00s; this is no different. The more interesting question is why, given that morale has been very low for an extended period, people are not queuing up to leave. I'm sure the answer does not lie solely in the state of the economy - people of talent and resource still have the opportunity to do well for themselves.
Can you remember the first rounds? If the criteria this time has been to (largely) select those at the bottom of their trade, then this is different from the early 90s IIRC. Is it completely open and above board this time? Also, there will be some seriously p1ssed of folk who did apply and not get it, are they going to be motivated in the future? I suspect not.