Would you go downsizing? or go virtual office (work from home)?

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In the low economic condition companies do lots of things in able to survive. Most companies laid off people,some asks everyone to lower their salaries or cut off benefits. Others, asks that there will be no downsizing but no increase will be given. They have so many ways to make people jobless just to survive. Others suggested to do virtual office (working from home and meet in the net). If your company is in crisis and there is a need to cut off expenses... would you 1. Go downsizing? or 2. Go Virtual Office (work from home)? Opinion Anyone?