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If your company is small, then no big deal just ask your company president to write a letter stating that we are doing very well even in this economy and there were no layoffs and there will be no layoffs. In a small company no body is layed off, they are just fired.
If your company is very big and layoffs are announced in the papers then your lawyer is right, they might reject your application.
This is the only way out, some how make the current RIR application into a Regular Labor application. Donot File a New application.
According to the law if your application is delayed for more than a year, you are allowed to extend your h1 even after 6 years. That will buy you some time. Also file for canadian residency.
Best of luck.