It is not so much they are laying off people but they realise that they need to reassess what they have already in the pool. Inevitably, during these challenging times, companies are not winning new contracts or contracts ending with no deployment of resource to new/existing ones or other reasons. New contracts are very difficulat at the moment. In either case, it is wise to keep and move employees around, put up VR and put on a recruitment freeze. As another said, keep jumping through the hoops and if and when they require you they will pull you in. Downside to it is you are spending alot of your time playing their game.
Let us know how it all pans out. Good Luck!