Agree that you shouldn't put all your money into your company's stock, but the employees were hung out to dry when Lay and his cohorts were dumping their stock at the end, but the employees were not allowed to sell theirs.
Employees were allowed to sell their vested shares, same as management.
Lay actually did not sell 5 million shares he owned - he sold less than 12% of his holdings.
He apparently went into the bankruptcy still believing in Enron stock, since he had sold so little of his vast holdings.