That is kinda sad really. I thought of BitPay as the next Google or the next Facebook. The layoffs could be a sign that they are no longer growing and that interest in BTC is starting to shrink. I certainly hope it doesn't turn into merely a fad. Who knows what the future will bring for BTC and maybe there will be a positive effect later on for BitPay.
Every company has it set backs including Google and Facebook (just watch the social network). There's still plenty of time for it to become the next big thing in bitcoin, though there is competition from several other payment processors etc which could cause them problems.