Eh... It's sad and it's not.
Some of these smaller companies honestly SEEK to be bought out, knowing they'll likely get shut down. You've got to understand that most of the employees are stockholders. When EA\Activision\Faceless Congolomerate X buy them out for ridiculous globs of money, these employees generally get a decent cut. Furthermore, as stockholders, they usually have some say in this as well. And if the employees are smart, they've had their retirement put into stock... It's honestly fairly standard for the industry.
When they get bought, the employees get a nice lump sum and usually continue working until new big brother drops most of them. So long as they're smart and don't spend that whole payout on something, they're fine.
And honestly, to some degree you do have to sometimes have to move franchises to new development teams. For example, the RE series, RE4\5 was a major departure for the series, new dev team made new ideas work very well. Other examples are the change in quality from more recent Tomb Raider games, Fallout 3, and there are others. I'm not saying it's always good, but do we really want to see another adventure from the Sonic Team? Teams get stale and stagnant, and sometimes the only way for the industry as a whole to keep things fresh is the circle of [employment] life, as layed off employees get work with different teams, or form new dev teams, new ideas sprout forth, and we get new franchises we can all enjoy. It's just how things are.
Besides, it's business, when a company sells to big brother; the investors and\or employees know that it's likely coming in the future, it's expected. Is it really fair to expect the buying company to nurture a smaller studio while they make subpar products? Honestly now, if EA buys Pandemic, and Pandemic's new products start selling less, how is it fair to expect EA to continue biting the bullet? EA already invested $XXX into Pandemic to buy them in the first place, why should they suffer for that? And honestly, Pandemic really didn't have a lot of fantastic exclusive rights franchises. No one cared about the Mercenaries series, Pandemic didn't own Star Wars Battlefront, and their LotR title was abysmal... So what are folks so worried about EA 'stealing' from this now-defunct studio, anyways?
Eh, nobody likes losing their jobs, but understand that this happens, and smart folks in these positions aren't without their safety nets.