I think it's okay to let people grieve. Some types of jobs are just not gonna make it. And people will look back and wonder what it was like to work those jobs. But it doesn't help the person grieving to tell them that eliminating their jobs is progress... give them space to grieve.

Give them space to grieve, but be realistic as well. Tell them they are probably going to have to adjust their life plans. It sucks, but they're not the first people to have been hit by disaster. What matters is how you respond.