I'm from the US, so employment here is at will. There were layoffs at every company that I worked for, and are entirely expect by anyone what has worked a while, when the economy turns down a bit.

Out of them all, the "red envelope on your desk" was the best approach, in my opinion. It let people have a moment to themselves to react to and accept something that they were, at that point, unable to change. Then, the manager would have one-on-one with everyone, to explain the packages. In my opinion, I wouldn't want a manager to tell me. It would be awkward and unnecessary, since it's usually entirely out of their control.