Funny, feeling insecure about my own job made me re-evaluate my position and choose to start on the path to commercial aviation. Figured I'd rather work hard for something that I wanted to do...
As for the impact on productivity, if I'm honest I've seen several colleagues give up caring. If the employer cares so little about the staff, why should they care? Alternatively there are those who have seen repeat waves of redundancies as opportunity to make themselves indispensable. And there are some people who will always maintain standards, because that's the way they are.