A probably silly question from someone without any understanding of the relevant laws: I'm assuming that it is ok to fire employees when a company goes bankrupt

A probably silly question from someone without any understanding of the relevant laws: I'm assuming that it is ok to fire employees when a company goes bankrupt, even when that company is fully owned by another company that is still doing well. Would it be possible to create a new subsidiary for each new employee? The subsidiary's CEO (only employee) would need to generate revenue as dictated by the company's chairman of the board, which would effectively be the employee's direct manager. I imagine there would be tons of complications, but wonder whether that could work in theory.