Excellent points but it won't be that bad for the managers...They signed their "deal with the devil" so the company will usually treat them with "kid gloves" even in crazy times like this crisis. A few unlucky managers will have the choice of becoming reps again or taking a package and trying their luck out on the carnage of the job market.
Remember, the managers need tons of reps under them to keep the scam going, so they won't decimate them as bad as would normally be expected. (Despite knowing they are mostly all essentially as worthless as themselves.)
Corporate America is a crazy place. It has gotten even more Machiavellian and "winner take all" now that the world has been tilted.