Certainly! I know a guy who got laid off recently, and he has a child with a sensitive medical condition who was relying on the guy's no-longer-existing health insurance for essential medical treatment.

Should the managers who organized the layoff go to prison?

That's more a feature of the messed up way US ties health insurance to employment, isn't it? Very few layoffs venture close to criminal territory, more part of how business works.

Probably