Lost half my business in 4 weeks, recession? Anyone built their business back up?

Welp... Ive lost half my business in a matter of weeks. I run a small digital agency. Very very small. Like 8 clients. I specialize in roofing and construction and the market has dipped almost 25% in the past few months. Although I do feel like this contributed to things, I cant deny that there possibly were some things on my end that could of prevented the clients from cancelling their contracts. I did just hire a new social media coordinator who really really messed up several posts.. I worked to recover from it but, I do think it may have been the trigger that lead to the cancellation of the services. It might also have been that some of these clients did have unrealistic expectations. Wanting a taste of champagne on a beer budget.

With that being said, this has cut my income drastically. Like losing these clients so fast has basically cut our revenue in half. I will be needing to layoff that associate I just hired, and work to basically try and rebuild the business. This to me is so upsetting, I dont know how im going to do this. Ive got a family to support and like I said we are small, like revenue of 200k a year type thing. So losing half the revenue, plus all the expense I have.. It puts me down to like absolutely nothing to pay myself. Im at such a loss. Anyone else been through this? Anyone else had to build their business back up? Are we in a recession?