Sorry is there evidence that the DHS were actually involved here as claimed in the author's twitter feed? Or do we take this at face value?
edit - and what does a DHS visit look like? Do they knock on your door at 6am or leave a card to call them back? Sorry I've never been in this situation before so I'd be interested in more details on that side of things.
Firing people in a continual, drip-feed fashion is devastating to morale of the remaining workers who are fearful they may be next, and sends a message of a slow, rotting decline.
Conventional wisdom if you're going to let a large number of people go is to do it once, do it correctly, and act decisively.
edit - and what does a DHS visit look like? Do they knock on your door at 6am or leave a card to call them back? Sorry I've never been in this situation before so I'd be interested in more details on that side of things.