My current employer, fortunately, does. Even before COVID, they were flexible w.r.t. work from home, and the management is more than willing to let you do your thing as long as you're delivering results. I will, and have, repaid that flexibility by going above and beyond in handling issues that weren't strictly my responsibility, working late on more than one occasion to ensure that deliverables got out the door in time.
However, I have had the misfortune for working for less understanding management. I've had management say, with a straight face in a team meeting, "If you're working from home, you ain't working." I've worked for management that openly ridiculed employees who had to take time off for family medical emergencies. You can be sure that, in those situations, I clocked out exactly when I considered my shift over.
In the face of a major recession, execs are not laying off to 'goose the stock' they are adjusting to the situation.
Of course it does happen, but in the grand scheme of corporate development across all industries, it's not hugely common.
There is a difference between 'loyalty' and 'doing a good job'.
It's not expected that companies will keep contractors for the long term, but they still would be expected to 'do a good job'.
And of course companies do not lay off talented people unless they have to - that makes no sense.
Even the most darkly cynical and Machiavellian Execs will try to keep talent if they can, otherwise, they can't make money. So more appropriately, employees will at least be held onto to the extent that they materially create value.
But again, even in that context 'Do A Good Job'.
Honestly, if even it's a crap company, it still makes sense to 'Do A Good Job'. Even in the face of grind.
The only time I think it makes sense to 'not' do a good job, is where it would be truly utterly futile or illegal etc..
If someone is in a bad situation, they can eventually move on to where their 'good work' is more appreciated / better compensated.
Loyalty isn't a huge requirement, but doing good work is.