These companies aren't in the business of making and selling games they're in the business of increasing company valuation on the stock market. You can't convince them not to do mass firing, it's one of the fastest and easiest ways to cut costs and rapidly increase valuation. You'd need the law to protect the employees.
Everyone familiar with the lore knew going in that it was going to be a tragedy. Reach had to fall after all. The tricky and surprising thing was getting people to root for the team and have hope for them, knowing the planet was going to be glassed.
They turned the story of the planet into a small personal story about a very desperate situation. It isn't the best game, by any means, but it's impressive in it's own way and one of the better prequels.