Lost Your Recruiting Job: How is your firm reacting to the economy?

Most large search firm repeat a cycle throughout changing market conditions: hire when busy, fire when slow. So why don't they ever use the down-cycle opportunity to create a more efficient search model so they can better sustain employment when the next downturn occurs? We've received tips, lists and all kinds of contact from individuals terminated from search firms. Leading firms have released hundreds of individuals, with one prominent Chicago-based firm terminating over 100 employees in the US. Terminated employees are faced with few opportunities in the business and long lines wherever jobs are available. This is forcing some hunters to band together and build new search businesses. What is your story and what are you doing to survive?