The problem with that is you're saying that crunch is just an alternative to being laid off, but companies do that during crunch anyway.
You misread my words. When I say lesser evil I mean it's the thing you shouldn't focus on over the larger problems, yet it very much can be a problem. When crunch is done unskillfully it damages productivity and morale of an entire workforce but in more cases than not it can be used without harm if the studio knows what they're doing. To do that, you need an evaluation of what your employees can do.
What is problematic is that shallow analysis can ruin a company. When management/HR/leads think they can push people "just a bit further" by making demands slightly outside the bounds of reality and saying "I'm sure you'll figure it out :)" that's where you get the unhealthy crunch. That mentality works on an individual level when integrating a new employee, pushing them to learn new skills and techniques to boost their productivity, but it ABSOLUTELY DOES NOT work on a larger scale. I've seen that mentality destroy projects entirely.
That's also more importantly where you get the layoffs, where shallow analysis fails to understand the necessity of the roles in a company and the duties of an individual employee. You fire an individual for underperforming then suddenly have to deal with 4 different individual's workloads suffering from dealing with the loss. This can have a tremendous cascading effect and lead to large swathes of people leaving or getting too much shit piled on them, and is a drain on HR to replace the roles.
To sum up, crunch is neutral and can be good or bad. Layoffs/restructuring is extremely volatile. Brent pointed out that both are basically just a failure in management, but I've also seen that problem exacerbated by leads, HR, and the production team. To point at one individual or team as the problem is to neglect missing crucial faults elsewhere.
Also, a lot of companies hire some employees purely for a project and let them go anyway.
Contractual/seasonal work is ultimately temporary in most cases. This is a non-issue if you keep yourself aware to the expiry date of your contract.