Glenn Reynolds posted a link to a video of CNN's show, Reliable Sources, where there was a long discussion about how the New Media will replace the old. As the host leaned forward in practiced interest, the guests all discussed how the network model followed by CNN was terminally screwed, totally outperformed by bloggers, amateur videographers using YouTube and podcasts.
It was surreal. At the time, all I could think of was all of the cameramen and crew around the set listening to the discussion and deciding to polish up their resumes and get out as soon as they could. It was like cattle interviewing the butcher. "And then what will happen to us, Mr. Butcher? We'll get stunned by a big electronic shock? And then? We get our throats slit? How fascinating!"
I've been in situations before where the employees all figured the company was doomed. No one did their best job for the firm, everyone was going on interviews and trying to get out before they were laid off. It's a snowball effect. Once this starts happening, even if the company could turn it around, it won't because all of their experienced people will be gone.