What is the best way to cut work force?

Now that jobs are being slashed all across the country, I'm seeing different ways that companies layoff employees. What is the best way to layoff staff with a minimal impact to the individual as well as the company?

I've experienced a layoff where the company announced there was no definite timeline, no specifics about who was going to be cut, and no details about how many were losing their jobs. Even further, a Q&A email was sent out to help ease everyone. However the ease was minimal as there were no straightforward answers in the email. Each question was answered: Plans are still being finalized and the company is committed to providing proactive and straightforward answers.

Now do a 180 degree turn and take a look at Target corporation a month ago. By the time the public announcement of a layoff was made, the layoff had already happened. Employees received an email at 8:45 telling them to go to the auditorium for a 9:30 meeting. Once the meeting started, they were told that there was a layoff and those that did not get the email were already laid off. Imagine the relief everyone in the auditorium felt.

When employees are left wondering about who, when, how many, etc, company productivity takes a direct hit. People start talking, proverbial water cooler chatting, looking for other jobs on company time, etc.

On the other hand, if you are sent packing with no warning, that can leave many people very surprised after having made no plans not even knowing it was coming. This can be very detrimental to families and those who have commitments to mortgages, kids, debt, etc.

So comparing the two examples, which do you think has less of an impact on an individual as well as company productivity? There must be a common ground between these two schools of thought. Companies must look at their own interests as well as their employees to evaluate the best method of cutting work force.