Do not resign at any cost. But if company is already decided to lay you off than you cannot save your job. Ask your company to terminate you.
What are the misconception about termination?
Many people has misconception that termination letter is very bad for careers. It's right only if a employee is terminate based on his fault like low performance or discipline break etc. But if company written that due to company's own issue you are being lay off than you should not be worry.
And if there is no fault from you than company has to mention the reason for your termination. And that reason is company itself. So you next employer will not be doubtful about you. And you will not find any difficulties to find new job.
Negotiate your compensation :During termination ask your company to compensate accordingly. If they do not compensate than later you can go to court or labour commission. Do not worry. It will not impact your careers.
If your current employer threaten you to diminished your career. Do not believe on it and fear for bad. If you does not has any fault no one can make any harm to you. You also assure them to challenge in court. Current employer might say you case will run for many many years. Yes it's right. But at last the employer has to big compensation. But keep in mind that your behaviour should be polite. Otherwise your rough behaviour may use as bad discipline and your case will be weak.
If you regisn than company can quickly put you off from service in few days. By this way companies can save huge amount of money. Plus their reputation in market will not be shown in bad light that they are employee firing company. That is why companies always ask employees to resign.
Believe me, as employee you has upper hand than your employer. You just need to be strong and be well planned to tackle the situation. As you have fear for your career. Your company has fear for bad reputation
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