Fall on the sword (i.e. resign, give money back) along with these folks being fired.

Have you ever guessed the future wrong in your personal life? Did falling on your sword help you and others in any way?

CEOs resigning or otherwise experiencing a lot of pain does not help the people being laid off. But if it becomes a cultural norm then CEOs in the future may be less likely to take steps that lead to layoffs.

Consider a more extreme example of the justice system. Putting somebody in prison doesn't undo the crime they committed. But deterrence is considered to be a reasonable argument for criminal punishment.