While I feel bad for the 3K being let go, something I have learned owning my own small business (that I never thought about as an employee) is it is a LOT cheaper to use consultants than to have employees. Employees cost a company AT LEAST 150% of their salary to have. When you have consultants/outsourcing you no longer have to pay sick days, personal days, health insurance, disability insurance, a ton of taxes you have to pay on employees (fica, disability, social security). You also limit your paperwork and the other employment guidelines that are pure BS.
From a human point of view it would seem phasing this in as jobs open up would be "kinder and gentler" but from a cost cutting point of view NW is making a wise decision on this.
As for if current FA's could outsource themselves, most would be unwilling to lose the benefits they had to do it. Others would be prohibited by being part of a union.