With few exceptions, the only difference I've seen between mass-layoffs during downturns and individuals laid during good times is that management schmoozes the later group a bit more. Usually most everyone knows that those folks are being let go for-cause whether incompetence or other failures, or bc they did something unprofessional, but to avoid issues/lawsuits management usually gives severance, a referral, and kind words at the exit interview. IME if someone is fired in a negative way then they have likely done something significantly illegal, unethical, or arguably so and in several cases those folks were arrested immediately before or after being terminated.
Whether/not folks deserve to be let go is another story. I do believe that many companies and managers choose to get rid of both great and terrible employees unnecessarily on a regular ala the Jack Welch bs methodologies to ensure their own positions and attempt to minimize employee overhead. I also believe that most employees would gladly give their heartfelt loyalty to a company for an entire career if kept and treated half-decently, and IME the most successful companies are the ones that hire good employees and keep them long-term. That said, there are many engineers in every age bracket that need to be in another profession due to their own laziness. I have no issues with folks willing to learn, however when folks refuse to learn CAD or perform other basic engineering tasks necessary for their position, then I take offense.
As to this downturn, if you're employed and busy then I'd recommend celebrating by banking your paycheck bc you might not have another for awhile. Many aren't, and even the govt is cutting back severely and going through mass layoffs. I concur with miningman on the notion that we will be paying for the first shutdowns for decades, and I try not to consider the possibility of a second round.
