I can bet that if you bring Google Reader up, you'll get a lot more complaining - than any "horrible Google services" topic.
If you decide to stop paying your water bill you don't lose service that same day. Typically these layoffs either cause or are a sign of stagnation and then some scrappy startup starts eating away at your market share.
How do you even know that?
Usually the only way that you will see that, as a customer, is when the people who left are unable to keep up with all the firefighting and things ultimately explode. Either with outages or a security breach.
You can accumulate a _lot_ of tech debt before customers notice. For smaller companies, that's often a fatal amount of debt.
Can they? In my experience, they don't tend to do this when it comes to deciding who to lay off. I assumed this was because they can't tell who the bottom 10-15% are.
Team members can tell, but can upper management?