NatWest did this about 7 years ago. We weren't actually made redundant to start with but were all aware that the branch would be going from about 16 staff down to 7 and everyone had to reapply for the positions available, even if they were the same as what you were doing at present. Also, staff from other branches were able to apply for positions at branches other than the ones they worked at.
If you were unsucessful in securing a position then redundancy was the answer.
They did 'cherry pick' they people that they thought were best (not me, I didn't apply, i transferred to a Department) and it was rather pleasing that some of those picked as 'the best' failed in the role they were successful in securing.