Of course, we can reduce the wages for all the staff so that they can keep the jobs.
In terms of total cost, Firing or Wage Reduce, could achieve the same result:
==>No. of Staff x Wages = Total Labor cost
e.g originally: 100 x $100 = 10,000
1.Firing: 50 x $100 = 5,000
2.Wage Reduce: 100 x $50 = 5,000
However, imagine, you are a selfish Top management, by Firing, you can reduce the cost while keeping your wage unchanged and the shareholders have same satisfaction level. Definitely, you will choose the Firing option.
Remember the first rule of Economics, Human is Selfish. Therfore, in order to obtain the max utiltiy level, while the other things achieved for the interested parties. The decision is from your own perspective, not from the social perspective.