Why is the company laying so many people off?

M: I can’t believe this company is letting so many of us go.
W: I know how you feel.  They should have let us know earlier about the plan to merge with Robson Inc.
M: I can’t agree with you more. Perhaps we should consider something legal against the company.
W: Well, that sounds too far to me at this point. All they are saying at this point is that it will be an official decision after both companies sign the contract by the end of next month.