The market is definitely getting tight for technical communicators. Layoffs are occuring in many industries, such as enterprise software development. During these cycles, true leaders emerge and major changes can occur to shape how we approach and solve issues.
Instead of doing more with less, we need to focus on doing less (only what truly adds value). What does the audience really need? When and where do they need it? What deliverables are no longer needed? Are there other ways to effectively meet user needs, such as supporting a user community forum or a wiki?