It was a common practice in the days of pirates.
If you were being chased by a ship that was trying to capture or kill you, you'd dump everything that wasn't vital over the side so you wouldn't be as heavy. A lighter ship goes faster, and your odds of escaping went up.
If you get hit with a job layoff, then you need to make like a pirate ship. Start shedding financial weight from the budget. Do what it takes to survive.
When you're getting out of debt, you should already be living small. But you need to go into overdrive when your source of income goes belly-up. Go into survivalist mode. No, we don't mean living in the woods with a hunting knife that you've named.
We mean get rid of every conceivable expense that isn't necessary to sustain the home. As Dave says, maintain the "four walls." That means food, shelter (house and utilities), clothing and transportation. The four walls are your basic needs. Notice how they don't include cable TV, gym memberships or fun money.
At the same time, when you wake up each day, ask yourself what you need to do to survive today. If your cabinets are stocked with groceries, then you don't need to go shopping. The day that you run out of food, go food shopping. If you don't need to drive anywhere, then save the gas. However you can reduce your spending, do it.
As far as the income side goes, you might be unemployed for a week or six months. You should go ballistic applying for jobs and scheduling interviews, but work may not come right away. When that happens, it's time to look for any job to get money coming in. It could be delivering pizzas.
Yes, there may be a pride issue. It's not easy to go from the boardroom to the baking room. But your family needs you to produce an income to live on and a budget to manage it. Put away that stupid little voice in your brain that says you're too good for certain types of work and get to caring for your family. Bottom line.