Yea that is right, they got laid off, because the games EA was selling for example were not making enough to support the staff, (or would have if it did not get pirated so much).
I underlined something in that last thing you wrote....well not meeting sales is because many of the potential customers were pirating the games instead...I think SPORE a game of theirs was the most pirated game in the world, on it's first day of being out....millions of people pirated it, that means millions times 50$ for the game (I think)....well you do the math, and yes it would have helped keep many sections of EA still up and running, it would have kept many people from losing their jobs.