It is not your job to be responsible for other peoples personal lives, you are not the messiah. All you can do is fight to get them the pay they deserve. What they do with the money you have no control over anyway.
Layoffs at non Fortune 500 companies generally have less warning than anything can be done about anyway. Sure if its budgeted at Pfizer 6mo in advance your an ahole for not telling people. However its usually more like 2-4 weeks that the people in charge even know beforehand. ALso remenber we are talking about CTO. Its the CFO that knows the truth about the finances and may be hiding it from you as the CTO.