Having been on both sides of the table, I can say that there's never a good or best way to handle layoffs. One never knows how an employee will react to the news, or if they'll cause a problem going back to the workplace to gather their belongings. Sometimes, it's best to just get it over with, but I'd say it should be done in a way that provides dignity for the employee.
I recall one company who called folks to their exit interview via the PA system. "OK Joe, you're next, come on down so we can give you your pink slip". Some companies would have an army of security folks at the ready.