On the other hand, the CEO sounds like an asshole and seems to have been using some kind of intrusive work surveillance technology to blame employees for the layoffs:
> “You guys know that at least 250 of the people terminated were working an average of 2 hours a day while clocking 8 hours+ a day in the payroll system? They were stealing from you and stealing from our customers who pay the bills that pay our bills"
A fine point if true, but how does he know which people were working two hours per day? And who else should be blamed if it was such a widespread practice? The answers to those questions won't reflect well on him.
I once worked at an employer who performed five rounds of layoffs in the space of a few months. I cannot recommend that method.
I agree with you, the 900-wide bandaid was the only practical option.
Given the alternatives, the 900-wide bandaid-ripping-off method seems best.