Yes boingdrvr, that is how it usually happens over here in Euroland You get 'made redundant', are given a very small severance package and retain no rights to further employment with tyhe company when things improve. At the moment the cuts are from EAT.
The EU introduced a new Flight Time Limitation scheme in July last year. EAT have not implemented them, using various delaying tactics. These will result in more crews being required to operate the schedules, so it is highly dubious that they are laying crews off while not being compliant with EU law!
Hope this answers your queries.