Yea I don't think so. If you only wanted to save the next 400 from getting laid off you would need a hell of a lot more than $2M dollars. Lets assume the average salary is 35K before taxes. 400x35000=$14M. If you wanted to save the 300 before that as well 700x35K=$24.5M. That's not taking into account any type of health care or other expenditures that goes along with keeping an employee on the payroll.
The average salary is most likely well below 35K/year and aside from group dental and prescription coverage there are no other health care costs to cover. Still, your point stands, albeit your numbers are a bit by by a few million bucks.