They could cut hours, which sometimes does happen in some industries, but then each worker gets paid less because they’re paid by the hour, and individual hourly workers often prefer more hours and more money to fewer hours and less money. (Places like retail stores that hire a lot of part-time workers are notorious for this—people get scheduled for more hours at times of the year when they expect to be busier and fewer when they expect less, but they don’t usually have outright layoffs.)
They could cut hours, which sometimes does happen in some industries, but then each worker gets paid less because they’re paid by the hour, and individual hourly workers often prefer more hours and more money to fewer hours and less money. (Places like retail stores that hire a lot of part-time workers are notorious for this—people get scheduled for more hours at times of the year when they expect to be busier and fewer when they expect less, but they don’t usually have outright layoffs.)