Well put hunter320. This seems to be the case with human resources in most industries during downturns-- namely, the first to walk are the ones you don't want to have leave (the most capable who know they can find new challenges elsewhere). The ones who hold on like coral to a rock are the ones who know they would be dead meat out on the job market.
In any case, I wonder whether announcing that they are getting rid of the expats is low-hanging political fruit? In any case, I feel it is appropriate for any employee to remember that no matter what they do, some day this job will end. The questions remaining is how soon that will come and how they spend their time during that period.