They’re people, not disposable objects. The alternative would be to distribute the cost of the layoffs evenly across the employer and the employees. Right now employees pay a disproportionate portion of the cost.
The cost you're referring to is fairly abstract - I'm not sure how it can be implemented for the employer. The cost to the laid-off employee is a loss of income, mental trauma, potential loss of residence. What would your ideal solution for the employer be here?
Loss of money? Layoffs normally have severance packages that are paid out to the employee - this can be seen as the company taking a monetary hit - though not proportional like you said. But what's the alternative here? 5x/10x'ing the severance package? I feel like that would make the job market even rougher as companies would be even more conservative with who and how much they hire.
Mental trauma? I mentioned it in another comment, but the employees after a layoff normally do have an increased fear of future layoffs which impact morale which would result in lower productivity.
Loss of residence / food? I'm coming up blank here.
Yeah I’m not sure there’s an obvious/ideal answer.
I do think there’s value in disincentivizing churn though. What we’ve been seeing lately is rapid hiring followed by rapid firing. I bet there’s some inflection point where the job market would actually benefit from less churn even if it comes at the cost of higher unemployment in the short term.
